Under Business and Professions Code Section 7159, when preparing a bid for a home improvement contract exceeding $500, what specific cost information must be included in the written contract?
Correct Answer
B) A description of the work, materials to be used, and the total price
Business and Professions Code Section 7159 requires home improvement contracts exceeding $500 to include a description of the work to be done, materials to be used, and the total price. This ensures transparency in cost estimation and protects consumers from unclear pricing structures.
Why This Is the Correct Answer
B&P Code Section 7159 explicitly requires home improvement contracts over $500 to include: (1) a description of the work to be performed, (2) a description of the materials to be used, and (3) the total price. This three-part requirement ensures consumers have full transparency about what they're paying for and what work/materials are covered.
Why the Other Options Are Wrong
Option A: Only the total contract price and completion date
Listing only the total contract price and completion date is insufficient. Section 7159 requires a description of the work AND materials in addition to price — a completion date alone does not satisfy the statute's consumer-protection mandate.
Option C: Equipment rental costs and permit fees separately itemized
Separately itemizing equipment rental costs and permit fees is not specifically mandated by Section 7159. While permits may need to be disclosed, the statute centers on work description, materials, and total price — not a line-item breakdown of equipment or fees.
Option D: Material costs only, with labor costs estimated verbally
Providing material costs only with verbally estimated labor costs directly violates Section 7159. All required cost information must appear in the written contract; verbal estimates for any portion of the contract price are not compliant.
Memory Technique
Remember '7159 = Work + Materials + Total Price' — think of it as the three legs of a stool: describe the Work, list the Materials, state the Total. Any contract missing one leg falls over (and violates the law).
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