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Video Guide on California Contractor Packages management

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Commonly Asked Questions about California Contractor Packages

Theres only one legally enforceable deposit limitation in California home improvement contractors cannot demand more than $1000 or 10% of the project cost, whichever is less. In this case, the State of California can hold the contractor legally liable for overstepping this law.
Contractor Salary in California Annual SalaryHourly Wage Top Earners $75,400 $36 75th Percentile $52,878 $25 Average $51,357 $25 25th Percentile $31,335 $15
Common Construction Deposit Structures 50/50 Deposit: Note that this will usually only be seen on smaller projects jobs like simple repairs or paint jobs, etc. An initial deposit is made to cover materials, permits, and possibly labor, while the final payment wraps up the profits and other expenses.
Providing deposits for contractors is a crucialand normalstep in starting a renovation. Short answer: Yes. But there are exceptions, and your contractor may have some flexibility. Below, Sweeten outlines the reasons behind upfront payment amounts, and some options for negotiating your deposit for a contractor.
Under California law, a contractor can require a down payment of $1,000 or 10 percent of the total cost, excluding finance charges, whichever is less. For swimming pool construction, the down payment should not exceed $200 or 2 percent of the total cost, excluding finance charges, whichever is less.
Your job may require some custom-made item thats non-returnable. In these cases, the supplier often asks for a 50% down payment. If nothing on your job is custom-ordered, then youd be foolish to advance money to a contractor.
REMEMBER The down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less, for a home improvement job or swimming pool, excluding finance charges.
The California State Board of Licensing exam can be difficult. Its not impossible, but it can be an intimidating process that takes a lot of your time and energy to prepare for it. The good news is that with the right preparation, you can succeed and get your license!