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California home improvement contract and payment rules

Source: California Electrician Help (californiaelectricianhelp.com), part of the Local Help Stations network (localhelpstations.com). Last updated November 2, 2026.

• CSLB says there must be a written contract for all home improvement projects over $500 in combined labor and materials costs.
• The down payment may not exceed $1,000 or 10 percent of the contract price, whichever is less (B&P 7159).
• It is against the law for a contractor to collect payment for work not yet completed (B&P 7159).
• CSLB says you may cancel within three days of signing a contract, and the cancellation must be in writing and mailed before midnight of the third day.

(source: Contractors State License Board) (source: California Legislature)

Small service calls ($750 or less)

• A service and repair contract is $750 or less, and you called the contractor to ask for the work (B&P 7159.10).
• No payment is due, and the contractor may not accept any, until the work is completed.
• The contractor must offer you any parts replaced during the service call.
• You may be charged only one service charge, including any trip charge or inspection fee.

(source: California Legislature)

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Sources

• Contractors State License Board (CSLB): Contracts and Binding Agreements (checked November 2, 2026)
• California Legislature (California Legislative Information): Business and Professions Code 7159 (home improvement contracts) (checked November 2, 2026)
• California Legislature (California Legislative Information): Business and Professions Code 7159.10 (service and repair contracts) (checked November 2, 2026)

Last updated: November 2, 2026