The short answer: In California, a home improvement job over $500 (labor and materials combined) needs a written contract that you and the contractor both sign before work starts. State law spells out much of what goes in it: the contractor’s name, address, email, phone, and license number, a description of the work and materials, the price, a payment schedule tied to completed work, approximate start and finish dates, a capped down payment, and required notices, including your right to cancel. A good contract also says who pulls permits, what’s excluded, and how changes get priced.
Here’s a mistake we see more often than you’d think. A homeowner signs a one-page estimate to “get on the schedule,” hands over a check, and figures the details will get worked out later.
The trouble is, that page may already be the deal. The Contractors State License Board (CSLB) puts it plainly: “Anything you sign as authorization to move forward with the project could become the contract.” Once it’s signed, both sides are bound by what it says, and by what it leaves out.
So before you sign anything or pay a deposit, it helps to know what a California remodeling contract is supposed to contain. Below is the legal checklist, the payment rules that protect you, what changed on January 1, 2026, and the practical items a good contract covers even when the law doesn’t require them.
When does California require a written remodeling contract?
California’s home improvement contract law (Business and Professions Code section 7159) applies when the total price, including labor, services, and materials, is more than $500. That covers most kitchen and bath remodels, additions, and plenty of smaller jobs too.
The contract has to be in writing, legible, and signed and dated by both of you before any work begins, and you should get a signed copy. Smaller jobs have their own rules, so if your project is modest, it’s worth knowing when a handyman can legally do the work in California and when you need a licensed contractor.
What does California law require in a home improvement contract?
Here are the main items the statute and the CSLB’s consumer guide call for. Think of it as the floor, not the ceiling.
| What the contract should show | What to look for | Why it matters |
|---|---|---|
| Contractor’s name, business address, and license number | A match with the CSLB license record | You want the company that actually holds the license |
| Email and phone on the first page | Both listed, along with the date signed | You’ll need them to send a cancellation notice |
| Salesperson’s name and registration number | Only if a salesperson sold you the job | Salespeople must be registered with the CSLB to sign for a contractor |
| Contract price | One clear number, with any finance charge listed separately | So you know the true cost of the work |
| Description of the work and materials | Brands, models, sizes, colors, and quantities where they matter | “Remodel kitchen” is not a scope; it’s an argument waiting to happen |
| Down payment | No more than $1,000 or 10 percent, whichever is less | The law caps what you pay before work starts |
| Schedule of progress payments | Each payment in dollars, tied to specific work or materials | You pay for progress, not promises |
| Approximate start date and completion date | Real dates, plus what counts as “starting” the job | Gives you a yardstick if the job stalls |
| Attached documents | Plans, specs, or allowance lists named in the contract | So they’re part of the deal, not just paperwork |
| Change order process | Changes in writing, signed before the changed work begins | Prevents surprise charges later |
| Subcontractors | A yes or no box on whether subs will be used | Tells you who will be on your property |
The law also sets minimum type sizes, with some notices required in bold. If key terms are buried in fine print, that’s worth a question.
How much should I pay up front, and how should payments work?
This is where a lot of homeowners get hurt, so it’s worth slowing down.
The down payment is capped. For home improvement work, it can’t be more than $1,000 or 10 percent of the contract price, whichever is less. On a $60,000 remodel, that’s $1,000, not $6,000. The CSLB notes there’s no exception for special-order materials. The only exception is for a contractor with a blanket performance and payment bond on file with the CSLB, which the board describes as rare.
Progress payments should follow the work. Each payment should be listed in dollars and tied to a specific stage, like “rough plumbing and electrical inspected” or “cabinets delivered and installed.” Apart from the down payment, the CSLB says payments to the contractor can’t exceed the value of the work performed.
A quick gut check: if you’re halfway through the payments but the work isn’t halfway done, ask why before you write the next check.
Can I cancel after I sign?
Usually, yes, for a short window. California gives most homeowners three business days to cancel a home improvement contract, or five business days if you’re 65 or older (for contracts signed on or after January 1, 2021). The contract must include a Notice of Cancellation form you can use. According to the CSLB, the contractor must return your payments within 10 days of receiving the notice.
Two exceptions to know: the right doesn’t apply if you negotiated the contract at the contractor’s place of business, and contracts to repair a home damaged in a declared emergency get a longer seven-day window.
What is the Mechanics Lien Warning, and why should I care?
Every California home improvement contract must include a Mechanics Lien Warning. Here’s the short version: if a subcontractor or supplier who worked on your project isn’t paid, they may be able to record a lien against your property, even if you paid your contractor in full.
The CSLB’s practical advice is to ask for a list of subcontractors and suppliers, and to collect lien releases as payments are made. California uses standard conditional and unconditional lien release forms, and the CSLB’s website explains the difference.
The contract should also carry required notices about the contractor’s commercial general liability insurance, workers’ compensation, extra work and change orders, and a notice about the CSLB. If any of these are missing, ask why.
What changed for California remodeling contracts in 2026?
Two new state laws took effect January 1, 2026, according to a CSLB industry bulletin:
- Email on the contract (AB 1327). Contractors must now include their email address, and you can send your cancellation notice by email.
- Subcontractor details on request (SB 517). If your contractor uses subcontractors, you can ask for each sub’s name, contact information, license number, and classification. The prime contractor stays responsible for the project.
What should a good remodeling contract cover beyond the legal minimum?
The statute protects you on payments and notices. It doesn’t settle every practical question that causes friction on a real job. From our side of the table, these are the items worth seeing in writing:
- Who pulls the permits and whether permit fees are in the price. (Not sure you need one? Here’s how to tell whether a kitchen remodel needs a permit in California.)
- What’s excluded. Painting, appliance hookups, patching after electrical work, haul-away. Exclusions are where bids quietly differ.
- Allowances. If tile or fixtures aren’t picked yet, the dollar allowance for each, and what happens if your choice costs more or less.
- Hidden conditions. How the contract handles surprises behind walls or under floors, and how that work gets priced.
- Cleanup and debris removal, including daily jobsite expectations.
- Working hours and site access, especially if you’re living in the home.
- Warranties in writing, stating what’s covered and for how long. The CSLB recommends this.
- Lien releases with each payment.
- Every verbal promise. If someone said it, it belongs on paper.
The CSLB also suggests never signing a blank or partly blank contract, and considering an attorney’s review before you sign.
What you can check yourself, and when to get help
You can do this yourself:
- Compare the contract to the license record on the CSLB website
- Walk through the table and checklist above, line by line
- Check the down payment and payment schedule against the cap and the work
- Ask for anything vague to be rewritten in plain terms
Get help when:
- The contract includes clauses you don’t understand, like arbitration, indemnity, or termination terms (talk with an attorney; this article isn’t legal advice)
- A contractor asks for more than the down payment cap or pushes you to sign today
- Work has stopped, or you’ve received a lien notice (contact the CSLB, and consider legal advice)
Frequently asked questions
Does a home improvement contract have to be in writing in California? Yes, when the total price for labor and materials is more than $500. It must be signed and dated by you and the contractor before work begins.
How much can a contractor ask for as a down payment in California? No more than $1,000 or 10 percent of the contract price, whichever is less, unless the contractor has a qualifying blanket bond on file with the CSLB.
How many days do I have to cancel a remodeling contract? Generally three business days, or five business days if you’re 65 or older. It doesn’t apply to contracts negotiated at the contractor’s place of business. Since January 1, 2026, you can cancel by email.
What is a change order? A written, signed agreement that changes the scope, price, or schedule. In California it should be signed by both of you before the changed work begins.
Can I ask who my contractor’s subcontractors are? Yes. Since January 1, 2026, a contractor must disclose a subcontractor’s name, contact information, license number, and classification when you ask.
Planning a remodel? Start with a clear scope.
A good contract starts long before anyone signs. It starts with a clear scope, real numbers, and a plan for permits and inspections.
De Sisto Construction, Inc. is a California licensed general contractor (CSLB License #803545), based in Signal Hill and in business since 2001. When you’re ready to talk about your project, we’ll walk you through the scope, the permit path, and a line-item estimate so you can see where every dollar goes before you commit. You can also explore our residential remodeling services, from kitchens and bathrooms to room additions.
Give us a call at 562-425-1050 or email us at info@desistogc.com (dcidirect.net)