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Law & Business · Module 1

Change Orders on Home Improvement Jobs

Lesson 2 of 7~20 minFree previewCurrent as of September 2026Leer en español

How California law handles extra work and changes on a home improvement contract. You will learn the three things every change order must state under B&P 7159.6, why it must be written and signed before the extra work starts, what the contract must say about change orders, how change orders interact with the payment rules, and what a contractor can and cannot recover when the paperwork is missing.

Key Takeaways

  • On a home improvement contract, any change must be in writing and signed by the parties before the work it covers begins (B&P 7159(d)).
  • A change order is not enforceable against the buyer unless it states the scope of the extra work, the amount added or subtracted, and the effect on the progress payments or the completion date (B&P 7159.6(a)).
  • The buyer may not require you to do extra or change-order work without giving written authorization (B&P 7159.6(b)).
  • Skipping the change-order rules does not wipe out every right to be paid: you may still recover under remedies that prevent unjust enrichment (B&P 7159.6(c)), but you face CSLB discipline and a proof problem.
  • The contract must include a change-order form and the heading "Note About Extra Work and Change Orders" with the required statement (B&P 7159(c)(5), 7159(d)(13)).
  • If the contract says subcontractors will be used, each change order must repeat the subcontractor disclaimer (B&P 7159(c)(7)(C)).
  • Change orders do not loosen the payment rules: you still cannot collect for work not yet done or materials not yet delivered (B&P 7159.5(a)(5)).
  • Stating the new contract total on each change order is not required by statute, but it is good practice and avoids arguments.

Why This Matters

Plenty of plumbing jobs change once the walls are open. You find a corroded shutoff, a cracked fitting, or the owner decides to add a second sink. California's home improvement law has specific rules for handling these changes, and CSLB's Law and Business study guide lists contracts and payments among the exam's major sections. Learn the three required items and the "before the work starts" rule, and you will handle both the exam questions and the real jobs.

The Core Rule

For a home improvement contract (a residential job with a contract price over $500, B&P 7159(b)), the law says:

  • The contract and any changes to the contract must be in writing and signed by the parties before the work covered by the change order starts (B&P 7159(d)).
  • The change-order form must be incorporated into the contract, and a change order becomes part of the contract only if it is in writing and signed by the parties before the work it covers begins (B&P 7159(c)(5)).

This rule is in Article 10 of the Contractors State License Law, which covers the home improvement business. On commercial or new construction work, what counts as an authorized change depends mostly on the contract you signed, so read the change clause in every contract before you start.

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