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Is there a limit on the size of a down payment for a California Private Commercial Construction Contract?

California
Anonymous General Contractor

An owner on a private commercial construction job is paying cash for the project, and doesn't want to complete the "credit app" information. I know there is limit on residential projects of $1000, or 10% of the contract amount, whichever is Lower, but I have not been able to find a source identifying any commercial limits.

2 replies

There's no limit on the size of a down payment for commercial jobs. You can ask for however much you want as a down payment. The only limit is on residential remodel jobs.

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Attorney at Carlton & Alberola
| 93 reviews
Nov 26, 2020

I don't believe there is a limit on a commercial project.

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