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Waiving of cslb 10% deposit limit for construction contract

Paramount, CA |

what law states federal or otherwise that a customer and the construction company have a right to waive the 10% deposit limit from business profession code 7159.5 if they both agree to it for the expedition of their contract together?

Attorney Answers 3


No law says that you can legally waive the limit. The law was designed to protect consumers. A contractor inducing a consumer to waive the limit is an act against public policy and violates the license laws. Of course, only the consumer and the contractor would know. As long as they maintain good relations, contractor's violation will not be known to CSLB.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of California. Responses are based solely on California law unless stated otherwise.

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Please see my response to your simmilar query.

How does waiving this statute expedite anything? The contractor is supposed to be adequately financed so as to be able to pay for materials and labor, so when the customer pays the contractor shouldn't make any difference to getting the job done.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.

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If you are referring to a home improvement contract (as opposed to a commercial construction contract), you cannot waive California Business and Professions Code Section 7159.5. Section 7159.5 applies to all home improvement contracts. Specifically, subdivision (3) provides that if a downpayment will be charged, the downpayment may not exceed one thousand dollars ($1,000) or 10 percent of the contract amount, whichever is less.

There should not be any reason to waive this requirement because the contract can, in the schedule of payments, call for immediate payment for work or services to be performed and any materials and equipment to be supplied so long as it does not exceed the value of the work performed or material delivered.

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