What should be in your construction contract
A good contract includes: detailed scope, specific materials, timeline with milestones, payment schedule, change order process, warranty, insurance requirements, and dispute resolution.
What should a construction contract include?
A California construction contract must include (per B&P Code 7159): (1) Contractor's name, address, license number, and classification. (2) Detailed scope of work - specific enough that both parties agree on what's included. (3) Specific materials - brands, grades, colors, not 'TBD' or 'equivalent.' (4) Project timeline with start and estimated completion dates. (5) Payment schedule tied to milestones. (6) Change order process - how changes are requested, priced, and approved. (7) Warranty - minimum workmanship guarantee. (8) Insurance requirements - GL and workers comp. (9) Dispute resolution - mediation before litigation. (10) 3-day right to cancel notice for home solicitation contracts. (11) Total contract price. If any of these are missing, ask for them before signing.
Is a verbal agreement with a contractor enforceable?
Technically, verbal contracts are legally binding in California for projects under certain thresholds. However, they are extremely difficult to enforce because there's no documentation of what was agreed. California law (B&P Code 7159) requires a written contract for any home improvement project over $500. If a contractor suggests working without a written contract, do not proceed. A proper written contract protects both parties and is essential for resolving any disputes. No legitimate contractor will refuse to put the agreement in writing.
What's the 3-day right to cancel in California?
Under California Civil Code Section 1689.5, if a contractor solicits you at your home (they came to you, not the other way around), you have 3 business days to cancel the contract without penalty. The contractor is required to provide you with a 'Notice of Cancellation' form. This applies to door-to-door sales and situations where the contractor initiated contact at your home. It does NOT apply if you sought out the contractor (called them, visited their office, etc.). If a contractor who came to your door pressures you to sign immediately and start work right away, that's a red flag - they may be trying to bypass your cancellation rights.
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Related guides in Contracts & Legal
Some change orders are legitimate (hidden damage, code requirements). Others are from poor initial scoping. Know the difference.
Document everything. Start with a written complaint to the contractor. Then file with CSLB. Mediation and small claims court are options for disputes under $10,000.
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