California Construction Law Flashcards

What does the 'doctrine of substantial performance' allow a contractor to do in California?

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.

Under California law, which party typically bears the risk if undisclosed subsurface conditions are discovered during excavation?

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.

What California law requires contractors to provide a written contract for home improvement work exceeding $500?

Answer: California Business and Professions Code §7159

BPC §7159 mandates written contracts for home improvement projects over $500, specifying required disclosures and terms.

A California contractor working without a valid license may be ordered to do which of the following by the CSLB?

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.

What is the maximum fine the CSLB can impose per citation violation on a licensed contractor?

Answer: $5,000

The CSLB can impose civil penalties of up to $5,000 per violation per citation issued to licensed contractors.

Under California law, what is the minimum notice period a contractor must give a homeowner before starting work under a home improvement contract?

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.