September 09, 2010
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Penalties for using an illegal construction contract in California:
  • Failure to include the disclosures required by Business and Professions Code § 7030, 7159 or 7164 risks discipline by the State License Board.
  • Failure to include the disclosures required by Code of Regulations § 872.1 (checklist) or 872.2 (insurance) also risks discipline by the State License Board.
  • Omission of the disclosures required by Business & Professions code § 7191 (arbitration) results in loss of the right to compel arbitration.
  • Failure to include the disclosures required by Business & Professions Code § 7163 (financing) makes the contract unenforceable.
  • Failure to include the disclosures required by Civil Code § 1803.2 (retail installment sale) makes the contract unenforceable.
  • Failure to observe requirements of Civil Code § 900 (warranty) results in a mandatory one year warranty.
  • Failure to make federal truth-in-lending disclosures requires restitution of the overcharge.
  • Failure to include the disclosures required by 12 Code of Federal Regulations § 226.15 extends the right of rescission to three years (rather than three days).
  • Omitting insulation disclosures required by 16 Code of Federal Regulations § 460 can result in an $11,000 fine.
The contracts linked below will help California contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current California and federal court decisions.

California Construction Contracts Available Now
Title Bias Contract Type Page Length
CA Commercial Construction I Light bias in favor of the contractor. Prime 38
CA Commercial Construction II Light bias in favor of the owner. Prime 15
CA Commercial Repair Neutral. Prime 23
CA Commercial Subcontract I Light bias in favor of the subcontractor. Subcontract 34
CA Commercial Subcontract II Light bias in favor of the contractor. Subcontract 17
CA Custom Home I Light bias in favor of the contractor. Prime 19
CA Custom Home II Light bias in favor of the owner. Prime 24
CA Home Improvement I Moderate bias in favor of the contractor. Prime 29
CA Home Improvement II Moderately favors the owner. Prime 37
CA Home Repair I Heavy bias in favor of the contractor. Prime 20
CA Home Repair II Heavy bias in favor of the owner. Prime 26
CA Pool Neutral. Prime 29
CA Public Works Subcontract Light bias in favor of the contractor. Subcontract 36
CA Residential Subcontract I Light bias in favor of the subcontractor. Subcontract 17
CA Residential Subcontract II Light bias in favor of the contractor. Subcontract 21
CA Tenant Improvement Neutral. Prime 16
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