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Owners have a right to cancel the contract within three business days if it was not negotiated at the contractor's place of business.
The contract incorporates several important documents, including insurance details and cancellation rights, which are essential for both parties.
The contract allows for two payment structures: cost-plus or fixed fee, with specific limits on down payments.
Any extra work or changes must be documented in writing and signed by both parties before commencement to be enforceable.
Contractors are required to maintain general liability and workers' compensation insurance, protecting both parties from potential liabilities.
Homeowners are warned about mechanics liens, which can be placed on their property by unpaid subcontractors or suppliers, even if they have paid the contractor.
The contract is governed by the laws of the State of California, ensuring compliance with local regulations and standards.
