CSLB Law & Business ExamContract Requirements and ExecutionMedium
During a bathroom remodel, a contractor and homeowner sign a written change order adding significant additional work due to unforeseen plumbing conditions. Besides the added cost, what else must the change order address under California law?
- AA revised amount for the contractor's license bond
- BA brand-new 3-day right to cancel the entire original contract
- CIssuance of a new Notice of Cancellation for the whole project
- DAny resulting change to the estimated completion date of the project
Show answer & explanationAnswer & explanation
Correct answer: D. Any resulting change to the estimated completion date of the project
A written change order must reflect all effects of the added work, including any resulting change to the completion date, so the homeowner has accurate information about the project's revised price and schedule.
Why the other options are wrong
- A. License bond amounts are set by the CSLB and are unrelated to individual change orders.
- B. A change order does not reopen the original 3-day cancellation period for the whole contract.
- C. A new Notice of Cancellation is not required merely because a change order is signed.
Change Order Contents
A written change order must state the change in scope, its effect on price, and any resulting change to the completion date.
- Must be in writing and signed by both parties
- Must state price adjustment
- Must state effect on completion date
Memory trick: New work, new price, new deadline — write it all down.