CSLB Law & Business ExamContract Requirements and ExecutionHard
During construction, a contractor and homeowner orally agree to an emergency change in scope of work to address a hazardous condition discovered on site. Under California law, what must the contractor do regarding this change order?
- AThe contractor may simply add the cost to the final invoice without any written change order
- BWritten change order requirements only apply to changes exceeding $10,000
- CThe contractor may begin the emergency work immediately, but must document the change order in writing and obtain the homeowner's signature as soon as reasonably possible afterward
- DNothing further is required because emergency changes can remain purely oral
Show answer & explanationAnswer & explanation
Correct answer: C. The contractor may begin the emergency work immediately, but must document the change order in writing and obtain the homeowner's signature as soon as reasonably possible afterward
For bona fide emergencies, a contractor may begin the necessary work immediately, but the change order must still be reduced to writing and signed by the homeowner as soon as reasonably practical, preserving the requirement that changes in scope and price be documented.
Why the other options are wrong
- A. Adding cost to the final invoice without documentation invites disputes and violates the law.
- B. There is no $10,000 threshold exempting smaller changes from written documentation.
- D. Oral-only agreements do not satisfy the written change order requirement, even for emergencies.
Emergency Change Orders
In a bona fide emergency, a contractor may begin extra work immediately but must still document the change order in writing and obtain signatures as soon as reasonably possible.
- Emergency work may start before paperwork is signed
- Written documentation must follow promptly
- No dollar threshold exempts change orders from being in writing
Memory trick: Act fast, then get it in writing fast too.