Contracting for Success

CONTRACTORS STATE LICENSE BOARD

California Department of Consumer Affairs

A C’ G 

H I C

TABLE OF CONTENTS

> Introduction 1

> Contracts – The Ground Rules 2

> Nuts and Bolts –

Putting the Contract Together 3

> Description of Work to be Done 5

> Progress Payment Schedule

Worksheet 7

> Sample Contract 10

> Notiﬁ cations and Disclosure

Statements 11

> Change Orders 11

> Three-Day Right to Cancel 15

> Seven-Day Right to Cancel 17

> Common Problems With

Home Improvement Contracts 19

> Service and Repair Contracts 20

> Resources 22

NOTE: This booklet contains legal guidelines for “home improvement” and “service and repair” contracts.

It does not contain deﬁ nitive statements of the law or a precise copy of a legal contract. If you have

questions about the application of the law for speciﬁ c situations, you should contact an attorney who

is familiar with the construction business.

A CONTRACTOR’S GUIDE TO HOME IMPROVEMENT CONTRACTS

INTRODUCTION

Dear Contractor,

A contract is one of the most important tools you have to help

you have a successful business. A well written contract can help

open the lines of communication between you and your client. A

badly written contract can quickly lead to miscommunication and

misunderstandings; problems that could land you in court or under

investigation by the Contractors State License Board (CSLB).

Contracting for Success was written to help you understand the

diﬀ erent elements that are required to be in all home improvement

contracts. It also explains the state requirements for Service and

Repair contracts. Please review this booklet closely and make sure

your contracts follow California law. We also encourage you to use

the other materials available to you for free on the CSLB website:

www.cslb.ca.gov.

 e CSLB hopes that by making this information available, we can

help you strengthen your management and service skills. Please help

us by doing your part to protect California consumers.

Sincerely,

C S L B

CONTRACTS – THE GROUND RULES

 ere are several basic elements that all Home Improvement

Contracts must legally contain:

> A home improvement contract and any changes to the contract

must be in writing and signed by all parties.  e writing must

be legible and printed forms must be readable.

> Before any work is started, the contractor must give the buyer

a copy of the contract signed and dated by both the contractor

and the buyer.

> Unless a larger typeface is speciﬁ ed in the law (Business and

Professions Code 7159), text in any printed form shall be in

at least 10-point typeface and the headings shall be in at least

10-point boldface type.

(Example of 10-point bold)

> Except for a down payment, a contractor can’t demand

or accept payment for work or materials until the work is

actually done or the materials are delivered.  e down

payment may not exceed $1,000 or 10 percent of the

contract amount, whichever is less.

> If the contract includes a salesperson's commission in the

contract price, the payment to the salesperson shall be made

on a pro rata basis in proportion to the schedule of payments

made to the contractor.

>  e contract must also contain the name and registration

number of the salesperson.

A CONTRACTOR’S GUIDE TO HOME IMPROVEMENT CONTRACTS

[A] NUTS AND BOLT -

PUTTING THE CONTRACT TOGETHER

Contracts can vary according to personal and business needs. California

law (Civil Code: 1689.7) does require the following elements in all home

improvement and swimming pool contracts. Service and Repair Contracts

are diﬀ erent. (For details on those diﬀ erences see page 20.)

[A.1]

CONTRACTOR INFORMATION

 e name, business address, and license number of the contractor. If applicable, the

name and registration number of the home impro

vement salesperson that solicited

or negotiated the contract.

Example:

[A.2]

IDENTIFY THE CONTRACT

Identify the type of contract in at least

10-point boldface type: “Home Improvement”.

(Also see “Service and Repair Contracts” on page 20.)

Example:

CONSTRUCTION CONTRACT

(Home Improvement)

This Construction Contract entered into by and between EFG and…

[A.3] CONSUMER NOTIFICATION

Insert the following statement in at least 12-point boldface type:

“You are entitled t

o a completely ﬁ lled in copy of this

agreement, signed by both you and the contractor,

before any work may be started.”

CONTRACTING FOR SUCCESS

[A.4] DESCRIBE WORK

“Description of the Project and Description of the Signiﬁ cant

Materials to be Used and Equipment to be Installed”

 is should be followed by a description of the project along with what materials will

be used and what equipment will be installed. Swimming pools go further, requiring

a plan and scale drawing showing the shape, size, dimensions, construction and

equipment speciﬁ cations.  e more details that are included, the less chance there

is for misunderstandings. (Get more details about putting together accurate work

descriptions on the next page.)

Example:

Description of the Project and Description of the Signiﬁ cant

Materials to be Used and Equipment to be Installed.

Contractor will furnish all labor, materials, equipment,

supervision, and contract administration to complete in a good

and workmanlike manner the following: Alterations to home of

Owner, located at [address] (the “Project”), as described more

fully in the drawings prepared by [design professional ], Sheets

1-___, dated_____________. By this reference, those drawings are

incorporated in and made a part of this Contract. Contractor’s

scope of work under this Contract does not include any of the

following items:_____________________________________________.

2. DESCRIPTION OF MATERIALS AND EQUIPMENT.

The materials and equipment to be used in the construction

of the Project are described more fully in the speciﬁ cations

prepared by [designer name], dated _____________. By this

reference, those speciﬁ cations are incorporated in and made

part of this contract.

[A] PUTTING THE CONTRACT TOGETHER Continued

DESCRIPTION OF WORK TO BE DONE

(THE SIGN OF A WELL-BUILT CONTRACT)

The best way to avoid disputes over what is or isn’t expected from a

home improvement job is to write out the details in a contract.

The contract should be as speciﬁ c as possible regarding all materials to

be used, such as the quality, quantity, weight, color, size, or brand name

as it may apply.

For example, the contract should say “Install oak kitchen cabinets,

manufactured by Company XYZ, model 01381A, as per the plan,” not just

“Install kitchen cabinets.”

DESCRIBING THE JOB – THE GOOD, THE BAD AND THE UGLY

THE GOOD THE BAD THE UGLY

Install kitchen cabinets manufactured by

Company XYZ, model ABC, per plan.

Install oak country

style kitchen

cabinets

Install kitchen

cabinets

Paint indoor entry (per plan) using brand X paint,

color ABC, two coats, with preparation described

in next paragraph.

Prep and paint

entryway with

blue paint

Paint the entry

Install brand X kitchen faucet in style ABC

and color BCS.

Kitchen faucet

replaced if

necessary

Replace kitchen

ﬁ xtures

Swimming pool contracts must include a plan and scale drawing

showing the shape, size dimensions, and construction and equipment

speciﬁ cations.

Make sure the contract includes everything that is agreed to, up to

and including complete cleanup and removal of debris and materials,

and special requests, like saving lumber for ﬁ rewood or saving certain

materials or appliances. Also, note any work that will be done by the

homeowner.

CONTRACTING FOR SUCCESS

[A.5] THE PRICE

Use the heading: “CONTRACT PRICE” followed by the amount of the contract

in dollars and cents. If a ﬁ nance charge will be charged, the heading: “FINANCE

CHARGE” followed by the amount in dollars and cents.  e ﬁ nance charge must be

separate from the contract amount. ( e contract amount must include the entire cost

of the contract, including proﬁ t, labor, and materials, but excluding ﬁ nance charges.)

Example:

THE CONTRACT PRICE

Owner shall pay Contractor the ﬁ xed sum of $______________

(the “Contract Price”) for the work to be performed under

this Contract, subject to additions and deductions pursuant

to change orders agreed upon in writing by the parties, and

subject to “allowances” as provided in this Paragraph 3.

 e Contract Price can include speciﬁ c dollar amounts that are set aside for certain

materials, ﬁ nishes, ﬁ xtures, and other items that have not been selected or decided upon

by the Owner.  ese allowances from the Contractor include all overhead and proﬁ t, plus

all applicable sales taxes. If the ﬁ nal cost of any item covered by the allowance is more or

less than the dollar amount listed, the Contract Price will be increased or decreased by a

written change order from the Contractor.

[A.6]

DOWN PAYMENT

If a down payment is charged, the details of the down payment shall be stated in the

following form:

(A)  e heading: “DOWN PAYMENT”

(B) A space where the actual down payment appears.

“THE DOWN PAYMENT MAY NOT EXCEED $1,000 OR 10

PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.”

[A.7]

PROGRESS PAYMENTS

If any payments (other than the down payment) are required before the project is

completed, the details must be spelled out in the following format:

(A) A schedule of progress payments shall be preceded by the heading:

“SCHEDULE OF PROGRESS PAYMENTS.”

[A] PUTTING THE CONTRACT TOGETHER Continued

PROGRESS PAYMENT SCHEDULE WORKSHEET

This worksheet is to help you determine the progress payment schedule

you will use in your Home Improvement Contract.

The information should be transferred to the actual contract.

Note: This worksheet should NOT be included with the contract.

1. Total Contract Price $

2. Down Payment (10 percent or $1,000, whichever is less) – $

3. Amount Remaining to be Billed to Customer

(Subtract Line #2 from Line #1 above)

= $

Remember: Except for the original down payment (Line #2 above), it is

against the law for you to get paid before you do the work, or for materials

before they have been delivered.

In the left column below list the work or services that you will perform for a

particular phase of the project. In the right column show the amount of money

the customer should pay you when that portion of the project is complete.

Work or Service

Performed

Amount Due

on Completion

4. $

5. + $

6. + $

7. + $

8. + $

9. + $

10. + $

11. Amount of Progress Payments =

(This should equal the ﬁ gure in Line #3 above)

CONTRACTING FOR SUCCESS

(B) Each progress payment shall be stated in dollars and cents and speciﬁ cally

reference the amount of work or services to be performed and any materials

and equipment to be supplied.

the following statement in at least 12-point boldface type

"The schedule of progress payments must speciﬁ cally describe

each phase of work, including the type and amount of work or

services scheduled to be supplied in each phase, along with the

amount of each proposed progress payment. IT IS AGAINST

THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR

WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET

DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A

DOWN PAYMENT." (12-point bold)

[A.8]

THE WORK TIME FRAME

 e contract should describe the work schedule in the following form:

• A statement that describes what the “start of work” consists of, a heading of

"APPROXIMATE START DATE" and the approximate date when the

work will start.

• Under the heading: "APPROXIMATE COMPLETION DATE”,

put in approximate date of completion.

Example:

START AND COMPLETION OF WORK

The work to be performed under this Contract shall be

commenced on approximately [date], as long as any required

building permits are received and any agreed upon funds

are paid to Contractor. The Project shall be completed by

approximately [date], subject to permissible delays as deﬁ ned

in this contract.

[A.9]

CONSUMER NOTICES

“LIST OF DOCUMENTS TO BE INCORPORATED

INTO THE CONTRACT”

Use this statement followed by the list of papers if additional documents need

to be added into the contract.

A CONTRACTOR’S GUIDE TO HOME IMPROVEMENT CONTRACTS

CONSUMER NOTICES Continued

Insert: “Note about Extra Work and Change Orders”

followed by the following statement:

“Extra Work and Change Orders become part of the contract

once the order is prepared in writing and signed by the parties

prior to the commencement of any work covered by the new

change order. The order must describe the scope of the extra

work or change, the cost to be added or subtracted from the

contract, and the effect the order will have on the schedule

of progress payments.”

ADDITIONAL CONSUMER NOTICES

All of the following notices must be provided to consumers in the contract or,

in some cases they can be added as an attachment if the law allows.

> Commercial General Liability Insurance

> Workers’ Compensation Insurance

> Performance of Extra or Change-order Work Notice

> Mechanics’ Lien Warning

> Contractors Board Notice

CANCELLATION NOTICE

More information about these notices and how they should be presented is

outlined in pages 15-18.

[A.10]

THE BOTTOM LINE

Places for signatures of contractor, salespersons and representatives, consumers,

along with today’s date.

[A] PUTTING THE CONTRACT TOGETHER Continued

EFG CONSTRUCTION, INC.

DATED:

PROPERTY OWNER

DATED:

By:

Arnold W. Mason, President or Salesperson

Owner’s Name Registration#

[A.9]

NOTE: You can get sample contracts from trade associations, oﬀ the Web

, and through

other legal publications. It is always advisable to have an attorney or legal expert check out

your contracts to make sure they are accurate and up-to-date.  ere have been a number of

recent changes in contract law that could aﬀ ect the validity of older forms.

SAMPLE CONTRACT

1234 Address – Santa Sierra, CA 90000 – License # 12345 (Earthwork and Paving)

CONSTRUCTION CONTRACT

(Home Improvement)

This Construction Contract (“Contract”) is entered into by and between EFG Construction, Inc.

(“Contractor”) and ______________________________ (“Owner”), whose residence address is

______________________________, and whose project address is ______________________________.

“You are entitled to a completely ﬁ lled in copy of this agreement, signed

by both you and the contractor, before any work may be started.”

1. DESCRIPTION OF WORK.

2. DESCRIPTION OF MATERIALS AND EQUIPMENT.

3. THE CONTRACT PRICE. Gue elis eu feum ing elis nim vulluptat

4. PAYMENT SCHEDULE. El et eu feugait utatetum dolore consequat. Ut ulla consed

dolor inciduisim aut iustisseniam nonum zzrilit vel ute magnissi exeraes tissis:

$__________ upon signing this Contract;

5. START AND COMPLETION OF WORK. Put wissequis doloborem nosto consequat

6. PERMITS AND TESTS. Vulputat praestie velenibh euissim volorpe rcilit ver irillum volor

8. PERMISSIBLE DELAYS. Facinci liquisl essim dolorpe raesse faciduisi

9. EXTRA WORK. Exerat nonse ero commy numsandre molor accum et am do cor

10. RELEASE OF MECHANICS’ LIENS. Sum quipit veros ent in ullam, consequam veril

11. ATTORNEY’S FEES. quis dolore dolobore feugiat incil init alit iliquam consed moluptat

ipit erat, quat, core tis enisisi smolobore mincilis at la commy nim dit lut.

12. CONTRACTORS REQUIRED TO BE LICENSED. Irit acidunt eugait acilis accum dui tion

13. COMPLETE AGREEMENT. Ure tis nullamet, commy niscidunt praestie veniat

14. OWNER’S RIGHT OF CANCELLATION. Ut ulla consed dolor inciduisim aut iustisseniam

nonum zzrilit vel ute magnissi exeraes tissis ad tet, sim quis duipis acipit nit accum

velit augiat

EFG CONSTRUCTION, INC.

DATED:

PROPERTY OWNER

DATED:

By:

Arnold W. Mason, President or Salesperson

Owner’s Name Registration#

A CONTRACTOR’S GUIDE TO HOME IMPROVEMENT CONTRACTS

[B] NOTIFICATION AND

DISCLOSURE STATEMENTS

Home improvement and swimming pool contracts in California are

required to have a number of notices for consumers. Some of these

notices must be in the main body of the contract and others may be

attached as a separate piece of paper.

Service and Repair contracts are slightly diﬀ erent. See page 20 for details

about notiﬁ cations in Service and Repair contracts.

 e following is a list of notiﬁ cations and how they should be presented.

[B.1]

EXTRA WORK AND CHANGE ORDERS

On the contract insert the heading: “NOTE ABOUT EXTRA WORK AND

CHANGE ORDER

” followed by the following statement:

“Extra Work and Change Orders become part of the contract once

the order is prepared in writing and signed by the parties prior

to the commencement of any work covered by the new change

order. The order must describe the scope of the extra work or

change, the cost to be added or subtracted from the contract,

and the effect the order will have on the schedule of progress

payments.”

CHANGE ORDERS

Disputes frequently arise over “changes” or “extras”. First of all, in

order to determine if something is extra or outside the scope of the

original agreement, contractors must see what the original contract

says. If the original agreement is well deﬁ ned, it will be easier to

determine if something is extra.

Change orders are required to perform extra or changed work.

Change order forms become a part of the contract once the

contractor and the homeowner sign them. The order must describe

the scope of the extra work or change, the cost to be added or

subtracted from the contract, and the effect the order will have

on the schedule of progress payments. Change orders can also be

written for the removal of items from the original agreement. All

change orders must be in writing.

CONTRACTING FOR SUCCESS

[B.2] COMMERCIAL GENERAL LIABILITY INSURANCE

 is notice may be provided as an attachment to the contract if the contract includes

the following statement: “A notice concerning commercial general liability insurance is

attached to this contract.”

 e notice shall include the heading: “COMMERCIAL GENERAL LIABILITY

INSURANCE (CGL)” followed by whichever of the following statements is correct:

(A) “(The name on the license or ‘This contractor’) does not

carry commercial general liability insurance.”

(B) “(The name on the license or ‘This contractor’) carries

commercial general liability insurance written by (the

insurance company). You may call the (insurance company)

at __________ to check the contractor’s insurance coverage.”

[B.3]

WORKERS’ COMPENSATION INSURANCE.

 is notice may be provided as an attachment to the contract if the contract includes

the statement: “A NOTICE CONCERNING WORKERS’ COMPENSATION

INSURANCE IS ATTACHED TO THIS CONTRACT.”

 e notice shall include the heading: “WORKERS’ COMPENSATION

INSURANCE” followed by whichever of the following statements is correct:

(A) “(The name on the license or ‘This contractor’) has no

employees and is exempt from workers’ compensation

requirements.”

(B) “(The name on the license or ‘This contractor’) carries

workers’ compensation insurance for all employees.”

[B.4]

PERFORMANCE OF EXTRA OR CHANGE-ORDER WORK NOTICE

(A) A statement telling the buyer that a contractor is not required to perform

additional work or changes without written approval in a “Change Order”

before any of the new work is started.

(B) A statement informing the buyer that extra work or a change order is not

enforceable against a buyer unless the change order also identiﬁ es all of the

following in writing prior to the commencement of any work covered by

the new change order:

(i)  e scope of work encompassed by the order.

(ii)  e amount to be added or subtracted from the contract.

(iii)  e eﬀ ect the order will make in the progress payments or the

completion date.

A CONTRACTOR’S GUIDE TO HOME IMPROVEMENT CONTRACTS

PERFORMANCE OF EXTRA OR CHANGE-ORDER WORK NOTICE Continued

with the requirements of this paragraph does not preclude the recovery of

compensation for work performed based upon legal or equitable remedies

designed to prevent unjust enrichment.

[B.5]

MECHANICS’ LIEN WARNING

All contracts must contain the following statement and heading:

“MECHANICS LIEN WARNING:”

“Anyone who helps improve your property, but who is not paid,

may record what is called a mechanics’ lien on your property.

A mechanics’ lien is a claim, like a mortgage or home equity

loan, made against your property and recorded with the

county recorder.

Even if you pay your contractor in full, unpaid subcontractors,

suppliers, and laborers who helped to improve your property

may record mechanics’ liens and sue you in court to foreclose

the lien. If a court ﬁ nds the lien is valid, you could be forced to

pay twice or have a court ofﬁ cer sell your home to pay the lien.

Liens can also affect your credit.

To preserve their right to record a lien, each subcontractor and

material supplier must provide you with a document called

a ‘20-day Preliminary Notice.’ This notice is not a lien. The

purpose of the notice is to let you know that the person who

sends you the notice has the right to record a lien on your

property if he or she is not paid.

BE CAREFUL. The Preliminary Notice can be sent up to 20 days

after the subcontractor starts work or the supplier provides

material. This can be a big problem if you pay your contractor

before you have received the Preliminary Notices. You will not

get Preliminary Notices from your prime contractor or from

laborers who work on your project. The law assumes that you

already know they are improving your property.

PROTECT YOURSELF FROM LIENS. You can protect yourself

from liens by getting a list from your contractor of all the

[B] NOTIFICATION AND

DISCLOSURE STATEMENTS

Continued

[B.4]

CONTRACTING FOR SUCCESS

subcontractors and material suppliers that work on your project.

Find out from your contractor when these subcontractors

started work and when these suppliers delivered goods

or materials. Then wait 20 days, paying attention to the

Preliminary Notices you receive.

PAY WITH JOINT CHECKS. One way to protect yourself is to

pay with a joint check. When your contractor tells you it is

time to pay for the work of a subcontractor or supplier who

has provided you with a Preliminary Notice, write a joint check

payable to both the contractor and the subcontractor or

material supplier.

For other ways to prevent liens, visit CSLB’s website at

www.cslb.ca.gov or call CSLB at 1-800-321-CSLB (2752).

Remember, if you do nothing, you risk having a lien placed on

your home. This can mean that you may have to pay twice, or

face the forced sale of your home to pay what you owe.”

CONTRACTORS BOARD NOTICE

[B.6]

 e following notice shall be inclided in at least 12-point typeface under

the heading:

“INFORMATION ABOUT THE CONTRACTORS

STATE LICENSE BOARD (CSLB)”

“CSLB is the state consumer protection agency that licenses and

regulates construction contractors. Contact CSLB for information

about the licensed contractor you are considering, including

information about disclosable complaints, disciplinary actions

and civil judgments that are reported to CSLB. Use only licensed

contractors. If you ﬁ le a complaint against a licensed contractor

within the legal deadline (usually four years), CSLB has authority

to investigate the complaint. If you use an unlicensed contractor,

CSLB may not be able to help you resolve your complaint. Your

only remedy may be in civil court, and you may be liable for

damages arising out of any injuries to the unlicensed contractor

or the unlicensed contractor’s employees.

For more information:

VISIT CSLB’s website at www.cslb.ca.gov

CALL CSLB at 1-800-321-CSLB (2752)

WRITE CSLB at P.O. Box 26000, Sacramento, CA 95826”

A CONTRACTOR’S GUIDE TO HOME IMPROVEMENT CONTRACTS

[B.7] “THREE-DAY RIGHT TO CANCEL

A “ ree-Day Right to Cancel,” notice must be provided to the buyer unless the

contract is: negotiated at the contractor’s place of business, subject to the “Seven-Day

Right to Cancel,” or subject to licensure under the Alarm Company Act, or is a Service

and Repair Contract.  is notice should be in 12-point boldface type.  ere should

be a place near the notice for the consumers signature. It should be written in the same

language (e.g., Spanish) that was used in any oral sales presentation.

“THREE-DAY” RIGHT TO CANCEL

“You, the buyer, have the right to cancel this contract within

three business days. You may cancel by e-mailing, mailing, faxing,

or delivering a written notice to the contractor at the contractor’s

place of business by midnight of the third business day after you

received a signed and dated copy of the contract that includes

this notice. Include your name, your address, and the date you

received the signed copy of the contract and this notice.

If you cancel, the contractor must return to you anything you

paid within 10 days of receiving the notice of cancellation. For

your part, you must make available to the contractor at your

residence, in substantially as good condition as you received it,

any goods delivered to you under this contract or sale. Or, you

may, if you wish, comply with the contractor’s instructions on

how to return the goods at the contractor’s expense and risk.

If you do make the goods available to the contractor and the

contractor does not pick them up within 20 days of the date of

your notice of cancellation, you may keep them without any

further obligation. If you fail to make the goods available to the

contractor, or if you agree to return the goods to the contractor

and fail to do so, then you remain liable for performance of all

obligations under the contract.”

 e notice may be attached to the contract if the contract includes, in at least

12-point boldface type, a check box with the following statement:

“The law requires that the contractor give you a notice explaining

your right to cancel. Initial the check box if the contractor has

given you a ‘Notice of the Three-Day Right to Cancel.’”

 e notice shall be accompanied by a completed form in duplicate, captioned

“Notice of Cancellation,” which shall also be attached to the agreement or oﬀ er to

purchase and be easily detachable, and which shall contain the following statement

written in the same language, e.g., Spanish, as used in the contract on the next page.

NOTICE OF RIGHT TO CANCEL

Notice of Cancellation

_________________________

(Enter date of transaction)

You may cancel this transaction, without any penalty or obligation, within three

business days from the above date.

If you cancel, any property traded in, any payments made by you under the

contract or sale, and any negotiable instrument executed by you will be returned

within 10 days following receipt by the seller of your cancellation notice, and any

security interest arising out of the transaction will be canceled.

If you cancel, you must make available to the seller at your residence, in

substantially as good condition as when received, any goods delivered to you

under this contract or sale, or you may, if you wish, comply with the instructions

of the seller regarding the return shipment of the goods at the seller’s expense

and risk.

If you do make the goods available to the seller and the seller does not pick them

up within 20 days of the date of your notice of cancellation, you may retain or

dispose of the goods without any further obligation.

If you fail to make the goods available to the seller, or if you agree to return the

goods to the seller and fail to do so, then you remain liable for performance of all

obligations under the contract.

To cancel this transaction, mail or deliver a signed and dated copy of this

cancellation notice, or any other written notice, or send a telegram to:

(Name of seller)

(Address of seller’s place of business)

not later than midnight of

(Date)

I hereby cancel this transaction

(Date)

(Buyer’s signature)

A CONTRACTOR’S GUIDE TO HOME IMPROVEMENT CONTRACTS

[B.8] “SEVEN-DAY RIGHT TO CANCEL”

 is notice is to be provided to the buyer for any contract that is written for the repair

or restoration of residential premises damaged by any sudden or catastrophic event

for which a state of emergency has been declared by the President of the United States

or the Governor, or for which a local emergency has been declared by the executive

oﬃ cer or governing body of any city, county, or city and county:

“SEVEN-DAY RIGHT TO CANCEL

You, the buyer, have the right to cancel this contract within seven

business days. You may cancel by e-mailing, mailing, faxing, or

delivering a written notice to the contractor at the contractor’s

place of business by midnight of the seventh business day

after you received a signed and dated copy of the contract that

includes this notice. Include your name, your address, and the

date you received the signed copy of the contract and this notice.