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|November 22, 2022||CSLB #22-14|
|CSLB Reminds Contractors of Progress Payment Restrictions
Sacramento, CA – The Contractors State License Board (CSLB) wants to remind all contractors that the Business and Professions Code (BPC) restricts payments on home improvement contracts to a maximum down payment of $1,000 and subsequent payments must not exceed the value of materials and work performed, including for residential solar.
BPC sections 7159 and 7159.5 contain mandatory home improvement contract provisions regarding down payments and progress payments for home improvement work. The definition of home improvement includes solar energy systems.
Home improvement contract provisions limit contract payments and require the following language to be in the contract, pursuant to BPC sections 7159(d)(8) and (9).
Contractors found to be in violation of home improvement contract law are subject to disciplinary action from the CSLB as well as inclusion on the Public Utilities Commission Watch List. In addition, a violation of BPC section 7159.5 and its provisions regarding down payment and progress payment restrictions is punishable as a misdemeanor.
To ensure you are complying with home improvement contract law, please see CSLB’s Contracting for Success Brochure.
About CSLB: CSLB operates under the umbrella of the Department of Consumer Affairs and licenses and regulates nearly 285,000 contractors in California. In 2021, CSLB helped consumers recover more than $44 million in ordered restitution.