Relating to construction contractors; prescribing an effective date.
Catchline/Summary:
Prohibits major residential contractor from collecting or retaining more than 50 percent of original contract price before substantial completion of remodeling or repair of owner-occupied one-family or two-family residential structure if original contract price exceeds $40,000.Requires certain residential general contractors proposing remodel or repair project of more than $20,000 in value to tour residential structure with property owner and provide property owner with itemized and detailed description for each feature of proposed construction work. Limits amount contractor may collect before completion and before property owner's approval and acceptance of itemized and described construction features.Requires contractor to request mediation by Construction Contractors Board before bringing action or suit or pursuing other remedies to collect payment from property owner that unreasonably withholds approval and acceptance.]
Prohibits major residential contractor from collecting or retaining more than 50 percent of original contract price before substantial completion of remodeling or repair of owner-occupied one-family or two-family residential structure if original contract price exceeds $40,000. Permits major residential contractor to collect not more than 50 percent of increase in contract price if property owner agrees in writing to changes that increase contract price by $20,000 or more. Permits major residential contractor to require property owner to make progress payments solely to cover costs of materials, supplies and payments to subcontractors. Specifies required contents of contract. Specifies exceptions to requirements.
Applies to contracts entered into on or after January 1, 2024.
Takes effect on 91st day following adjournment sine die.
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