CSLB Law & Business ExamContract Requirements and ExecutionMedium
A contractor discovers unforeseen conditions that require additional work beyond the original scope of a home improvement contract. What must occur before the contractor may perform and charge for this additional work?
- AThe contractor may proceed and simply add the cost to the final invoice
- BThe contractor only needs a new building permit; no change order is needed
- CThe change must be documented in a written change order signed by both parties before performing the additional work
- DThe homeowner's verbal approval over the phone is sufficient documentation
Show answer & explanationAnswer & explanation
Correct answer: C. The change must be documented in a written change order signed by both parties before performing the additional work
California law requires that any change to the scope of work or price be documented in a written change order signed by both the contractor and homeowner before the additional work is performed, protecting both parties from disputes over cost and scope.
Why the other options are wrong
- A. Adding costs later without documentation invites disputes and violates contract law.
- B. A building permit does not substitute for a legally required change order.
- D. Verbal approval alone does not satisfy the written documentation requirement.
Change Order Requirement
Any modification to scope, price, or completion date on a home improvement contract must be documented in a written change order signed by both parties.
- Must be in writing and signed by both parties
- Becomes part of the original contract
- Protects against billing disputes
Memory trick: No signature, no scope shift.