CSLB California Construction Law 2 — Questions and Answers
Question 1: What does the 'doctrine of substantial performance' allow a contractor to do in California?
- Skip final inspections
- Recover payment even if minor defects exist, subject to offset (Correct answer)
- Void a contract without penalty
- Avoid workers' compensation requirements
Correct answer: Recover payment even if minor defects exist, subject to offset
Substantial performance allows a contractor to recover payment when work is nearly complete, with the owner receiving a deduction for uncorrected deficiencies.
Question 2: Under California law, which party typically bears the risk if undisclosed subsurface conditions are discovered during excavation?
- The subcontractor
- The contractor always
- The owner, if the contract includes a differing site conditions clause (Correct answer)
- The project engineer only
Correct answer: The owner, if the contract includes a differing site conditions clause
When a contract includes a differing site conditions clause, the owner generally bears the risk for unknown subsurface conditions that differ materially from those indicated.
Question 3: What California law requires contractors to provide a written contract for home improvement work exceeding $500?
- California Labor Code §1720
- California Business and Professions Code §7159 (Correct answer)
- California Civil Code §1624
- California Health and Safety Code §17920
Correct answer: California Business and Professions Code §7159
BPC §7159 mandates written contracts for home improvement projects over $500, specifying required disclosures and terms.
Question 4: A California contractor working without a valid license may be ordered to do which of the following by the CSLB?
- Pay back all wages earned
- Disgorge (return) all compensation received for unlicensed work (Correct answer)
- Demolish any completed work
- Surrender all tools and equipment
Correct answer: Disgorge (return) all compensation received for unlicensed work
Under BPC §7031, an unlicensed contractor can be required to disgorge all compensation received, even if the work was properly performed.
Question 5: What is the maximum fine the CSLB can impose per citation violation on a licensed contractor?
- $500
- $1,000
- $5,000 (Correct answer)
- $15,000
Correct answer: $5,000
The CSLB can impose civil penalties of up to $5,000 per violation per citation issued to licensed contractors.
Question 6: Under California law, what is the minimum notice period a contractor must give a homeowner before starting work under a home improvement contract?
- No notice required (Correct answer)
- 1 business day
- 3 business days
- 5 business days
Correct answer: No notice required
California law does not mandate a minimum pre-start notice period for home improvement work once a valid written contract is executed.
CSLB California Construction Law 2
What does the 'doctrine of substantial performance' allow a contractor to do in California?