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May 14, 2012

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What is a Home Improvement Contract

Subpart 1.6—Career Development, Contracting Authority, and Responsibilities
A home improvement contract is an oral or written agreement BETWEEN a contractor or salesperson AND either a residential owner or a tenant for the performance of a home improvement.

If the total cost of the project exceeds $500, by law the contract MUST be in writing. The total cost includes labor, services, and materials.

A home improvement contract must include elements specified in Business and Professions Code Section 7159 and elsewhere. This document outlines those elements.

Business and Professions Code 7151.2

"Top Ten" Problems with Home Improvement Contracts

In no particular order, here are frequently seen problems with home improvement contracts:

Notice regarding Registrar's address missing
Excessive down payment requested
Equipment to be used or installed not detailed, and materials to be used not described specifically enough
Notice to owner regarding liens not included
Job to be completed is not clearly stated and described
Right to cancel notice missing
Bid not figured out carefully and/or completely
Change orders not included
Old notices used with old addresses and noncompliant language
Start and stop dates not included

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Did You Know?

If You Have A Contract Issue You Can Call For 'Arbitration'
Some written contracts call for "arbitration" if you have a problem. This means that you have the right to take a dispute to an impartial person-or group of persons-with no connection to the courts.

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	News about contract cases in New York and nationwide: General Information on Contracts By definition, and as contractors already know, contractors contract. It's an essential part of what contractors do. And the essential meaning of c... Read more > Contractor Shall Be Included As Part Of The Contractor's An STA may implement procedures or requirements which extend preferential employment to all Indians. Recruiting efforts may be targeted toward thos... Read more > Which Remain In Place At The Contractor's Convenience The manufacturing process for a steel/iron product is considered complete when the product is ready for use as an item (e.g., fencing, posts, girde... Read more > More Contract News >

Contract Terms

Today's Terms

Seal

Definition:
A mark or sign that is used to attest the execution of an instrument, contract, or other document.

Open-End Contract

Definition:
An agreement by which the buyer may purchase an unspecified amount of goods from a seller over a certain period of time without changes in the price or the contract terms.

Beneficiary

Definition:
The person for whose benefit a contract, or trust, or will is executed or enforced.

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Contract Hot Topics

Topics Related to Contract:

Acceptance
Breach of Contract
Conditions
Liability
Offers
Underwriter
Warranty
Competent Parties
Mutual Assent
Consideration

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