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According to California Business and Professions Code Section 7028.7, what cost estimation documentation must a licensed contractor maintain for change orders on projects exceeding $25,000?

Correct Answer

A) Written change orders with detailed cost breakdown signed by all parties

B&P Code 7028.7 requires written change orders with detailed cost breakdowns signed by all parties for projects over $25,000. This protects both contractors and clients by ensuring cost changes are properly documented and agreed upon before work proceeds.

Answer Options
A
Written change orders with detailed cost breakdown signed by all parties
B
Verbal agreements with written confirmation within 30 days
C
Photographic evidence of additional work with cost estimates
D
Email documentation with cost estimates

Why This Is the Correct Answer

B&P Code 7028.7 requires written change orders with detailed cost breakdowns signed by all parties for projects over $25,000. This protects both contractors and clients by ensuring cost changes are properly documented and agreed upon before work proceeds.

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