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If my contractor is demanding for prepayment for material AND labor would that be considered a breach of contract?

California

I’m a homeowner who has a contractor that has not been sending workers even after he’s demanded for and received prepayments in material AND labor.

2 replies

Aug 4, 2022
Look at California Business and Professions Code 7159(d)(9)(c), which includes in part the statement "IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT."
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Aug 8, 2022
Dear Homeowner,

Whether there is a breach of contract depends upon the terms in the contract, and also upon whether the project is a repair replacement project after a disaster or subject to Homeowner improvement contract laws. The question of whether the contractor has taken your money and headed for the hills is usually answered by time, so it depends on what the promised schedule was and where you are in relation to that schedule.

If you would like to discuss this further, I can schedule you a free 20-minute consultation.
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