California Construction Contract Law

Construction contracts are regulated by law in California.

Under California law, contractors engaged in construction projects must be licensed. Construction contracts in the state are subject to laws, designed to ensure fair treatment for the contractor and the person or organization engaging the contractor.

Complaint Reporting

If you are a licensed contractor in California and you are writing a contract for any construction work other than home improvements or service contracts, the contract must include statements that contractors have to be licensed by law and that the State License Board is authorized to investigate complaints against licensed contractors.

Arbitration

If a contractor wants disputes that may arise as a result of his work to be settled by arbitration, rather than by the courts, he must include a section stating this in the contract. The section must be printed in 10-point, bold, uppercase type.

Financing

If getting a loan to cover all or part of the contract's cost is a condition of the contract, it is not enforceable against the buyer. The contract is also unenforceable if the contractor is providing financing to the buyer.

References

• California Business and Professions Code: Section 7025 to 7034 Licensed Contractors
• California Business and Professions Code: Section 7190 to 7191 Arbitration
• California Business and Professions Code: Section 7150 to 7168 Contract Requirements

Resources

• Construction Contract: California