A signed estimate is not necessarily a compliant home improvement contract. California requires written home improvement contracts for work exceeding $500 and prescribes detailed contents and notices. That threshold is different from the $1,000 minor-work licensing exemption. S6, S7
How much can a contractor ask for upfront in California?
The ordinary maximum down payment is $1,000 or 10% of the contract price, whichever is less. On an $8,000 contract, that means $800. On a $25,000 contract, it means $1,000. Do not assume that expensive custom materials automatically permit a larger deposit; statutory bond or joint-control exceptions require their own conditions. S6
Progress payments should correspond to work performed or materials delivered. Calling a charge a “progress payment” does not justify collecting nearly the full price before substantial work has been done.
Three cancellation periods are not interchangeable
A home-solicitation transaction covered by the usual cancellation rule gives the buyer three business days to cancel. Qualifying buyers aged 65 or older receive five business days. Certain disaster-related home-solicitation contracts carry seven business days. Coverage, timing and exceptions matter; do not apply the longest period to every contract or shorten it merely because work is urgent. S6, S30
Check the whole document
Identification and license details, the work description, price, payment schedule, approximate dates, required notices and signed change orders all deserve attention. This list is a study aid, not a substitute for the complete statutory contract requirements. A home improvement salesperson (HIS) may also need to register with CSLB. S6, S12
When practicing, separate four questions: Is a written contract required? What deposit is allowed? Which cancellation rule applies? What paperwork is missing? Solving them individually is more reliable than memorizing one number for every residential job.
Sources
- S6: CSLB Home Improvement Contracts Consumer Guide
- S7: CSLB AB 2622 implementation — $1,000 minor-work threshold
- S12: CSLB California Contractors License Law & Reference Book 2026
- S30: California Civil Code § 1689.6 — cancellation (statute mirror)
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