California Home Improvement Contract with Statutory Notices

HOME IMPROVEMENT — California Contract

Before you use this: Use this form for a covered home improvement contract over $500, wherever it is negotiated. Complete every blank and select the applicable cancellation option below. Print the contract in at least 10-point type with headings in at least 10-point boldface type; print statements marked 12-point boldface in at least 12-point boldface type and the full CSLB notice in at least 12-point type. If a right-to-cancel notice applies, put it next to the owner's signature and attach two completed, easily detachable copies of the selected Notice of Cancellation. Give the buyer a completed copy signed and dated by both parties before work begins. A sale principally presented orally in another language needs the required notices in that language. This form does not cover a service-and-repair contract under § 7159.10 or an alarm-system exception.

Date buyer signs: [__/__/____]

Notice of Cancellation may be sent to Contractor at: [CONTRACTOR NAME, BUSINESS STREET ADDRESS, CITY, CA ZIP, EMAIL ADDRESS]. Contractor telephone number for help locating and completing the Notice of Cancellation: [PHONE].

Buyer / owner or tenant: [FULL LEGAL NAME]; address: [STREET, CITY, CA ZIP]; telephone/email: [PHONE; EMAIL].

Contractor: [LICENSED LEGAL NAME]; business address: [STREET, CITY, CA ZIP]; telephone/email: [PHONE; EMAIL]; California contractor license number: [NUMBER].

Home improvement salesperson, if applicable: [NAME / NONE]; registration number: [NUMBER / NOT APPLICABLE].

Project address: [STREET, CITY, COUNTY, CA ZIP].

12-point boldface — You are entitled to a completely filled in copy of this agreement, signed by both you and the contractor, before any work may be started.

Description of the Project and Description of the Significant Materials to be Used and Equipment to be Installed

Contractor shall perform the following work at the project address: [DESCRIBE EACH WORK AREA, TASK, AND FINISH]. Significant materials, manufacturer/model, grade, quantity, and equipment to be installed: [DESCRIBE]. Plans and specifications, if any: [IDENTIFY AND ATTACH]. Excluded work: [DESCRIBE / NONE]. Permit responsibility and cost: [DESCRIBE]. Contractor shall perform the agreed work in accordance with applicable law and the attached specifications.

For a swimming-pool project, attach a plan and scale drawing showing shape, size, dimensions, construction, and equipment specifications.

Contract Price

$[DOLLARS].[CENTS] is the entire contract price, including labor, materials, overhead, and profit, excluding any separately stated finance charge. Payment method: [METHOD].

Finance Charge

$[DOLLARS].[CENTS] / NONE. If financing is arranged, identify the separate written financing documents: [DOCUMENTS / NONE].

Downpayment

$[DOLLARS].[CENTS] / NONE, due [AFTER BOTH PARTIES SIGN].

12-point boldface — THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.

Schedule of Progress Payments

Complete a schedule that identifies each phase and its work, services, materials, and equipment. Except for the downpayment, no payment may be requested or accepted before the value of the work performed or materials delivered equals that payment.

12-point boldface — The schedule of progress payments must specifically describe each phase of work, including the type and amount of work or services scheduled to be supplied in each phase, along with the amount of each proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT.

The downpayment plus scheduled payments must equal the Contract Price, subject only to signed change orders. Upon satisfactory payment for a portion of the work, Contractor shall, before any further payment, furnish Buyer a full and unconditional release from any potential lien claimant claim or mechanics lien under Civil Code §§ 8400 and 8404 for the paid portion. Buyer may withhold further payment until the releases are furnished.

Approximate Start Date

[__/__/____]. Substantial commencement under this contract means: [SPECIFIC ON-SITE WORK OR OTHER OBJECTIVE EVENT].

Approximate Completion Date

[__/__/____]. Contractor shall promptly notify Buyer of a material scheduling change. A change to the agreed work, price, payment schedule, or completion date must be documented in a signed change order before the changed work starts.

List of Documents to be Incorporated into the Contract

[EXHIBIT A — SCOPE AND SPECIFICATIONS; EXHIBIT B — PLANS; OTHER IDENTIFIED DOCUMENTS / NONE]. Each listed document is attached and incorporated into this contract. A conflicting later change is effective only through a signed change order.

Note About Extra Work and Change Orders

Extra Work and Change Orders become part of the contract once the order is prepared in writing and signed by the parties prior to the commencement of work covered by the new change order. The order must describe the scope of the extra work or change, the cost to be added or subtracted from the contract, and the effect the order will have on the schedule of progress payments.

Buyer may not require extra or changed work without written authorization before it starts. A change order is not enforceable against Buyer unless it states the scope, amount added or subtracted, and effect on progress payments or completion date in writing before that work starts. The attached change-order form is part of this contract only when completed and signed by both parties before the changed work starts. A failure to meet these requirements does not bar recovery under a legal or equitable remedy designed to prevent unjust enrichment.

Subcontractors

Will one or more subcontractors be used? ☐ Yes ☐ No

If Yes, this statutory notice applies: One or more subcontractors will be used on this project, and the contractor is aware that a list of subcontractors is required to be provided, upon request, along with the names, contact information, license number, and classification of those subcontractors.

Buyer may request the list from Contractor at the contact address above. The same notice appears on the change-order form.

Commercial General Liability Insurance (CGL)

Retain the one accurate statement:

☐ [CONTRACTOR NAME] does not carry commercial general liability insurance.

☐ [CONTRACTOR NAME] carries commercial general liability insurance written by [INSURANCE COMPANY]. You may call [INSURANCE COMPANY] at [PHONE] to check the contractor's insurance coverage.

☐ [CONTRACTOR NAME] is self-insured.

☐ [CONTRACTOR NAME] is a limited liability company that carries liability insurance or maintains other security as required by law. You may call [INSURANCE COMPANY / TRUST COMPANY / BANK] at [PHONE] to check on the contractor's insurance coverage or security.

Workers' Compensation Insurance

Retain the one accurate statement:

☐ [CONTRACTOR NAME] has no employees and is exempt from workers' compensation requirements.

☐ [CONTRACTOR NAME] carries workers' compensation insurance for all employees.

Mechanics Lien Warning

MECHANICS LIEN WARNING:

Anyone who helps improve your property, but who is not paid, may record what is called a mechanics lien on your property. A mechanics lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder.

Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to improve your property may record mechanics liens and sue you in court to foreclose the lien. If a court finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the lien. Liens can also affect your credit.

To preserve their right to record a lien, each subcontractor and material supplier must provide you with a document called a “Preliminary Notice.” This notice is not a lien. The purpose of the notice is to let you know that the person who sends you the notice has the right to record a lien on your property if they are not paid.

BE CAREFUL. The Preliminary Notice can be sent up to 20 days after the subcontractor starts work or the supplier provides material. This can be a big problem if you pay your contractor before you have received the Preliminary Notices.

You will not get Preliminary Notices from your prime contractor or from laborers who work on your project. The law assumes that you already know they are improving your property.

PROTECT YOURSELF FROM LIENS. You can protect yourself from liens by getting a list from your contractor of all the subcontractors and material suppliers that work on your project. Find out from your contractor when these subcontractors started work and when these suppliers delivered goods or materials. Then wait 20 days, paying attention to the Preliminary Notices you receive.

PAY WITH JOINT CHECKS. One way to protect yourself is to pay with a joint check. When your contractor tells you it is time to pay for the work of a subcontractor or supplier who has provided you with a Preliminary Notice, write a joint check payable to both the contractor and the subcontractor or material supplier.

For other ways to prevent liens, visit CSLB's internet website at www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752). REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR HOME. This can mean that you may have to pay twice, or face the forced sale of your home to pay what you owe.

Information about the Contractors State License Board (CSLB)

Information about the Contractors State License Board (CSLB): CSLB is the state consumer protection agency that licenses and regulates construction contractors.

Contact CSLB for information about the licensed contractor you are considering, including information about disclosable complaints, disciplinary actions, and civil judgments that are reported to CSLB.

Use only licensed contractors. If you file a complaint against a licensed contractor within the legal deadline (usually four years), CSLB has authority to investigate the complaint. If you use an unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only remedy may be in civil court, and you may be liable for damages arising out of any injuries to the unlicensed contractor or the unlicensed contractor's employees.

For more information:

Visit CSLB's internet website at www.cslb.ca.gov
Call CSLB at 800-321-CSLB (2752)
Write CSLB at P.O. Box 26000, Sacramento, CA 95826.

Cancellation notice selection and acknowledgment

Select one option. If a cancellation period applies, replace both bracketed number words in the right-to-cancel notice and both detachable cancellation forms before signing:

☐ Three-Day Right to Cancel: ordinary covered sale, unless an exception in § 7159(e)(6)(A) applies. Use three / third.

☐ Five-Day Right to Cancel: buyer is a senior citizen; use five / fifth, unless the seven-day disaster rule applies. Use five / fifth.

☐ Seven-Day Right to Cancel: repair or restoration of residential premises damaged by a qualifying declared sudden or catastrophic event. Use seven / seventh.

☐ No three- or five-day notice under § 7159(e)(6): contract negotiated at the contractor's place of business and the seven-day disaster notice does not apply. Omit the right-to-cancel notice and detachable cancellation forms below.

If a cancellation period applies, the selected notice and two completed detachable Notice of Cancellation forms are attached: ☐ Yes ☐ Not applicable under the selected option. Buyer's initials: [____].

Signatures and performance bond right

Buyer has the right to require Contractor to have a performance and payment bond.

Buyer and Contractor agree to the completed contract, attached exhibits, and any applicable right-to-cancel notice and detachable cancellation forms. Contractor shall provide Buyer a signed and dated copy before work begins.

Buyer signature: [________________________________] Date: [__/__/____]

Contractor signature: [________________________________] Date: [__/__/____]

Contractor's printed name and capacity: [________________________________]

Selected Right to Cancel Notice — if applicable, place immediately next to buyer's signature

12-point boldface; heading must read exactly “Three-Day Right to Cancel,” “Five-Day Right to Cancel,” or “Seven-Day Right to Cancel” after selection.

[THREE / FIVE / SEVEN]-Day Right to Cancel

You, the buyer, have the right to cancel this contract within [three / five / seven] business days. You may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor's place of business by midnight of the [third / fifth / seventh] business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice.

If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received them, goods delivered to you under this contract or sale. Or, you may, if you wish, comply with the contractor's instructions on how to return the goods at the contractor's expense and risk. If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do so, then you remain liable for performance of all obligations under the contract.

Buyer acknowledges receipt of this notice: [BUYER SIGNATURE] Date: [__/__/____]

Detachable Notice of Cancellation — Copy 1

Notice of Cancellation
Date of transaction: [__/__/____]

You may cancel this transaction, without any penalty or obligation, within [three / five / seven] business days from the above date.

If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.

If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller's expense and risk.

If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram to [SELLER NAME], at [SELLER'S BUSINESS STREET ADDRESS, CITY, STATE ZIP], not later than midnight of [__/__/____].

I hereby cancel this transaction. Date: [__/__/____] Buyer's signature: [________________________________]

Detachable Notice of Cancellation — Copy 2

Notice of Cancellation
Date of transaction: [__/__/____]

You may cancel this transaction, without any penalty or obligation, within [three / five / seven] business days from the above date.

If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.

If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller's expense and risk.

If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram to [SELLER NAME], at [SELLER'S BUSINESS STREET ADDRESS, CITY, STATE ZIP], not later than midnight of [__/__/____].

I hereby cancel this transaction. Date: [__/__/____] Buyer's signature: [________________________________]

Change Order — duplicate this form for each change

Change-order number and date: [NUMBER]; [__/__/____].
Original contract date and project address: [__/__/____]; [ADDRESS].
Scope of extra or changed work: [SPECIFIC DESCRIPTION].
Amount added or subtracted: $[AMOUNT] ☐ added ☐ subtracted.
Effect on progress payments: [REVISED PHASE, WORK, MATERIALS, AND AMOUNT / NONE].
Effect on approximate completion date: [NEW DATE / NO CHANGE].

If subcontractors will be used for this changed work: One or more subcontractors will be used on this project, and the contractor is aware that a list of subcontractors is required to be provided, upon request, along with the names, contact information, license number, and classification of those subcontractors.

The parties authorize this change before the changed work starts. Buyer signature and date: [SIGNATURE; __/__/____]. Contractor signature and date: [SIGNATURE; __/__/____].

Official sources

• Cal. Bus. & Prof. Code § 7159
• Cal. Bus. & Prof. Code § 7159.5
• Cal. Bus. & Prof. Code § 7159.6
• CSLB 2026 Contractors License Law and Reference Book