Running the Business · Part 3
Template: the home improvement contract, with every B&P 7159 notice verbatim
The complete home improvement contract in the order section 7159 requires, with each statutory statement and notice reproduced word for word, the type sizes the statute demands marked in brackets, and blanks for your job. Print it, have an attorney look at it once, and then use it for every residential job over $500 that does not qualify for the service and repair form. A filled-in example for the $2,575 water heater follows the blank so the deposit, the dates, and the notices are shown as they should read.
What the full lesson covers
- The bracketed type sizes are requirements: body 10-point, headings 10-point bold, and the three marked statements plus the cancellation notice in 12-point bold. A form that looks right at the wrong size is non-compliant.
- The right-to-cancel notice must sit immediately next to the buyer's signature and be signed and dated by the buyer; the two Notice of Cancellation forms are attached and detachable.
- Use the five-day notice for a senior citizen and the seven-day notice for repairs after a declared emergency; the three-day notice is not required when the contract was negotiated at your place of business.
- Fill the insurance notices with the true statement and the carrier's name and phone; fill the downpayment at or below $1,000 or 10 percent; tie every progress payment to a described phase.
Unlock the full lesson
This is the public summary. The full lesson has the method, the worked cases, the checklists and the templates:
- All in-depth lessons, exam prep and After the License
- 1,200+ practice questions
- AI tutor (100 messages included)
- 18+ hours of audio lessons
- Full-length practice exams
- Pass guarantee
More lessons in Contracts and Getting Paid
- 1The home improvement contract (B&P 7159): every required element, the exact notices, and the three-day right to cancel
- 2The deposit cap: $1,000 or 10 percent, whichever is less, and progress payments that cannot exceed the work. CSLB's most common citation
- 3Service and repair contracts (B&P 7159.10): when the short form applies, what it must say, and how a service call falls out of it
- 4Subcontracts with GCs: the twelve clauses to read, what to strike, and what to negotiate