CSLB Law & Business ExamContract Requirements and ExecutionHard
A home improvement contract specifies a start date of March 1. Due to a permit delay, the contractor is unable to begin work until March 20. Under California law, what is the contractor's obligation regarding this delay?
- AThe contractor must automatically reduce the contract price by 10% for each week of delay
- BNo action is required since minor scheduling delays are presumed acceptable
- CThe contractor must notify the homeowner in writing of the reason for the delay and provide a revised start date
- DThe contractor must void the contract and require the homeowner to rebid the project
Show answer & explanationAnswer & explanation
Correct answer: C. The contractor must notify the homeowner in writing of the reason for the delay and provide a revised start date
California law requires that if a contractor cannot begin or complete work within the timeframe stated in the contract, the contractor must notify the homeowner in writing of the reason for the delay and provide a new start or completion date, preserving the homeowner's ability to make informed decisions about the project.
Why the other options are wrong
- A. There is no automatic price-reduction penalty required by law for delays.
- B. Delays are not simply presumed acceptable without notice.
- D. A delay does not automatically void the contract or require rebidding.
Notice of Schedule Delay
If a contractor cannot meet the stated start or completion date, California law requires written notice to the homeowner explaining the delay and providing a new date.
- Delay must be communicated in writing
- Must include reason and new date
- Protects homeowner's right to make informed decisions
Memory trick: Late start? Send a note, with a new date to quote.