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Can I require more than 10% down payment on a contract with a business/corporation

Anonymous Contractor

Excluding contracts for home improvement projects, does California law prohibit contractors from requiring down payments larger than 10%? Thank you.

2 replies

Peter Lindborg

Construction Lawyer

Legal Guard Lawyer

Attorney at Lindborg & Mazor Llp

| 18 reviews

Apr 2, 2020

No other types of construction contracts are subject to the 10% limitation.

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Cathleen Curl

Construction Lawyer

Attorney at The Law Office Of Cathleen M. Curl

| 134 reviews

Apr 2, 2020

I agree. Only home remodel contracts limit the amount of the down payment, and that's only between the homeowner and the contractor. Subcontractors, even on home remodel projects, can charge whatever they want in their subcontracts with the general contractor. Contractors on non-home remodel projects and commercial construction can charge whatever they want as a down payment.

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