HOME IMPROVEMENT (CONSTRUCTION) CONTRACTS

This article is intended to provide a basic explanation of "DIY contracts" (HIC). This article is not intended to provide legal advice to readers on how licensed owners and / or contractors should design HIC codes. Many factors, including, but not limited to: (a) the type of project, (b) the terms and conditions, (c) the project specifications, or (d) the participation of the architect, have a significant impact on the conditions contained in a HIC between the homeowner and a contractor. Occasionally, a contract may be more effective due to a omitted provision or a construction service area expressly excluded from the contract. Therefore, this article is not intended to replace advice given to an attorney regarding a particular problem, contract, or construction project. If the reader has a specific legal problem or needs legal advice, they should contact an attorney.



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In our practice, we offer instructions for the resolution of disputes related to construction contracts. Construction conflicts often arise during conversions or renovations of residential buildings. Home remodeling called "DIY projects" under California law requires a written contract under California law for a "DIY contract" (or "HIC"). We help contractors and homeowners develop SICs and resolve disputes over home improvement contracts.

Unfortunately, as is often the case, we are only contacted after problems occur. For example, contractors often come to us after being informed of a homeowner's complaint to the State Contractors Licensing Commission or after a claim has been filed against the contractor's license deposit. We have helped many entrepreneurs in these and similar situations.

We also help homeowners (a) design or customize SIC for their renovation project; or (b) help homeowners resolve disputes with their subcontractors. Often homeowners will contact us after discovering that their contractor is on his knees on an over-budget, overdue home improvement project, don't pre-approve for certain work, billed for duplicate work or corrective, or has provided work that violates building codes or is otherwise defective. Sometimes homeowners don't find out until they hire an unauthorized person who claims to be an "employer" who doesn't have (or doesn't have) enough workers' compensation insurance. We have represented property owners to successfully resolve their disputes using a variety of legal options and strategies.

The purpose of this article is to inform both contractors and owners of the need for a "code compliant" DIY contract that defines project parameters BEFORE the start of the construction project for the renovation of the House.

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HOME IMPROVEMENT PROJECTS
Under the legal definition, a "maintenance staff" includes the repair, conversion, modification, conversion, modernization, or addition of residential property. In addition to the house itself, DIY work also includes work on other adjacent improvements, such as entrances, pools, terraces, gardens, and fences.

If a California home improvement project is worth more than $ 500, there must be a written contract between the contractor and the owner (or tenant). Section 7159 of the State Contractor Licensing Act lists many elements that must be included in any home improvement contract, including but not limited to fees, mechanical privileges, changing orders, and the owner's right to terminate the contract. California law even prescribes the size and style of the typeface to be used in the contract.

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INFORMATION FOR ENTREPRENEURS
If you are a Californian entrepreneur, do you have a written DIY contract that you use for DIY projects and renovations worth more than $ 500? Failure to do so violates California law and risks fining you. and even detained in certain circumstances. If you use a written contract, is it current and in compliance with applicable California law? Also provide the owner with any additional documents and information required, such as: B. the owner's checklist or lead risk information required by the federal government. Does construction work interfere with lead colors and require EPA certification? Do you use the same written contract for all of your home improvement projects? In our experience, a unit contract has its limits, especially if the scope of your work differs from project to project.

At Last & Faoro, we help entrepreneurs develop home improvement contracts that not only comply with California law, but also address common issues that we have seen in litigation over 25 years of experience. Additionally, we have helped entrepreneurs adopt and implement design and business practices and procedures to avoid problems that our other entrepreneurs have encountered. For example, a home improvement contract should address general payment concerns, increase the likelihood of receiving a payment, avoid payment problems with other contractors and suppliers, and avoid construction delays.

A home improvement contract must consider not only how disputes can be avoided, but also how disputes that arise can be resolved. For example, does the contractor want to resolve a construction dispute? A mandatory arbitration clause in a home improvement contract that requires the owner and contractor to resolve their differences must comply with section 7191 of the state contractor licensing law. Otherwise, as a California court recently ruled against the Superior Court in Woolls, the contractor cannot apply the arbitration clause.

Before starting work on your next home improvement project, you should consult an attorney to ensure that HIC and its business practices are consistent with the law to minimize the potential for future litigation or liability and maximize the success of your business. . long-term and profitability.


INFORMATION FOR OWNERS
Doing your homework before choosing a contractor can make a big difference between a successful remodel and a nightmare. Here are some simple steps homeowners can take as a precaution to protect themselves against hiring a contractor:

Make sure the contractor is licensed. You can access the website of the State Commission on Entrepreneur Licensing online at www.cslb.ca.gov.
Ask the contractor to provide you with a copy of your liability insurance information and phone number to verify that the contractor is insured.
Confirm that the contractor has severance insurance for all of the contractor's employees.
Confirm that the contractor has a link from the contractor.
Pay attention to a contractor requesting a deposit before starting work. If the contractor requires a down payment, be aware that California law limits down payments for home improvement projects to $ 1,000 or 10% of the contract price, whichever is less.
Also consult an attorney before hiring a contractor to further protect yourself. An attorney can review the home improvement contract to make sure you have adequate protection to avoid common problems. For example, does the contract include a completion schedule? What is the scope of the work? Is there a retention clause? Is there a compensation provision that requires the contractor to defend and compensate the owner? An attorney can help contractors and homeowners with these and other common construction problems.

An attorney can also provide advice and assistance in obtaining privileges over contractors, subcontractors, and suppliers. An experienced construction attorney like Last & Faoro attorneys can guide you through a construction project and advise you with advice and recommendations on modification orders, subcontracts, performance or payment guarantees and mechanical privileges.




CONCLUSION
As a recommendation to our existing and potential clients, legal advice should be used proactively, ideally BEFORE signing the contract to avoid future problems.

Mr. Faoro has been a partner at Last & Faoro for over 25 years and specializes in real estate and construction law. Supports homeowners, developers, contractors, and brokers in the real estate and construction industries. He can be contacted at (650) 696-8350 or by email at dlfaoro@lf-lawyers.com. The previous article is only intended to provide an overview of some of the issues that need to be solved with a home improvement contract. The article should not include legal advice, should not discuss or address a particular situation or problem, and should not be used as the basis for legal decisions. If you have a specific legal question or need legal advice, you should contact a qualified attorney.

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