Home Improvement Contract

Home Improvement Contract

Home Improvement Contract

If any home improvements are set to be made, California law has requirements. Contractors have to provide homeowners with a Home Improvement Contract (HIC). The HIC must comply with California law.
The content of a construction agreement is regulated by numerous codes and statues. Some laws require these contracts to use a certain language. For virtually every type of construction contract Business and Professions Code section 7030.5 (BPC 7030.5) requires that a contractor place their license number on all contracts, subcontracts, bids, and advertising.
Business and Professions Code section 7159 (BPC 7159), states that the agreement must be legible and signed. The signed copy (by both homeowner and contractor must be given to the buyer before the work begins.
A few provisions of a Home Improvement Contract:
  • All relevant business information such as name, address and license number
  • Dates
  • Scope of work (start date and completion date)
  • Contact information for “Notice of Cancellation” document
  • In at least 12-point bold type, this statement: “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.”
  • Statement after payment that releases any potential lien claimant claim or mechanics lien

The list below is not an exhaustive list. This is a rough template. Any contract should be discussed and drawn with an attorney to make sure your contract is in compliance with state law. A law attorney can help not only assist in drafting the contract, but also oversee payments.

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