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Home>Levelset Community>Legal Help>Once a contractor starts to work on a job can he ask for 50% payment of contracted price of job? CSLB says yes.

Once a contractor starts to work on a job can he ask for 50% payment of contracted price of job? CSLB says yes.

CaliforniaBond ClaimsConstruction ContractLicenses

We hired a licensed contractor (a neighbor) to install 9" x 47" porcelain tile plank flooring throughout our complete house. He told me that he required 50% down at the start of the job and then there would be progress payments at the end of each week, it was to be a 2 week job. On the day he started the job I gave him a check for the 50% he had requested. After the first day of his work we noticed there were several problems with the job. There was a lot of excessive lippage and crooked tiles. The next day he had other obligations and was not at our job. When he returned on day 3 I immediately informed him of my concerns. He said everything was within industry standards and refused to correct anything. We have filed complaints with the CSLB and his bond company. The CSLB mediator told us that a deposit for a job can only be 10% or $1000. whichever is less however she stated that because he had actually started the job when I gave him the check he is entitled to ask for more and the 10% law does not apply. However doesn't this violate the law that states he cannot ask to be paid for work not done or materials not delivered? We purchased the tile ourselves from a flooring store. The only materials he provided that day were 3 bags of mortar and 2 gallons of a roll on coupling membrane, less that $200 of materials. We have since discovered many other problems with his work. The roll-on membrane was applied wrong, we have numerous cracks in our concrete slab that he paid no attention to, he used the wrong mortar and the wrong size trowel to install the tiles and we have since discovered many hollow sounding tiles. Of course the contractor denies any wrong-doing. The bond company says we have to prove he violated the Contractors License Law before they will consider payment on his bond. And there was not written contract only a bid sent to us 3 days before the start of the job which was a different price quoted to us a month or so earlier by phone. The CSLB said they would take action on this but what type I don't know. The mediation phase has ended and we are waiting to be contacted by an investigator so at this time we have no one to contact at the CSLB. This has been going on for 3 months now. Any insight or advice you cay give me will be greatly appreciated. Thank you.

1 reply

Jul 20, 2020
If you're having trouble navigating a dispute with your contractor, their surety, and the CSLB - it'd be useful to consult a local California construction lawyer. They'll be able to review your documentation, communications from the CSLB, and any other relevant information and advise on your next best steps. You can begin the search for an attorney here, if you'd like: Find a California Construction Lawyer. Generally, the CA Business & Profession Code restricts down payments for home improvement contract to the lesser of 10% of the project price or $1,000, as laid out at section 7159.5(a)(3). And, other than a down payment, a contractor cannot request or accept payment exceeding the value of the work performed or material delivered under section 7159.5(a)(5). So, if 50% down payment was required, that'd likely exceed what's allowed. Granted, if some materials have been delivered at the time the down payment is made, that might affect the calculation of what's being considered a down payment. If the contractor arrived with some materials, and if the total value of the down payment minus those materials equals less than the 10% or $1,000 bar - then it could be acceptable. Additionally, California home improvement contracts have other form requirements which must be followed. Levelset discusses those requirements in great detail here: California Home Improvement Contracts – Details & Requirements. And, if these form requirements weren't followed and if the issue was raised with the CSLB, then that should weigh heavily into their decision.
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