Construction Laws! October 16, 2019
Hi, Kamal the Builder here to talk about certain aspects of construction law and how they apply to homeowners.
[Disclaimer: I am not a lawyer, I’m a builder, so I’m not giving you legal advice here. Consult a lawyer to get a legal perspective.]
Your contractor should be licensed at all times during the performance of the work. You can check their license status and everything needed at the state website: cslb.ca.gov
There is also a set of laws about Down payments. You should not be paying more than 10% of the project cost or $1,000 as a down payment, whichever is less. That means for a good-sized project you shouldn’t be paying more than $1,000 as a down payment. You should also consider rules involving a written contract. The written contract should show the scope of project, the down payment, start and end dates, etc. Defining the scope would also assist you with organization of the whole project.
Additionally, the written contract should specify rules about change orders, a three-day right to cancel, and a warning notice about mechanic’s liens. For example, the written contract would explain what needs to happen in order to impose a change order. Furthermore, you should also be wary of stop work orders. If you were to owe your contractor money, they are legally allowed to conduct a stop work order and stop all work, unless they arepaid for work they have conducted so far.
Finally, there are laws around mechanic’s liens. If you didn’t pay your contractor, or if the contractor didn’t pay the subcontractors or suppliers, a mechanic’s lien can be placed on your property. A mechanic’s lien will prevent you from refinancing or selling your house, and it can also take many months to deal with it. Avoid mechanic’s liens!
Hopefully you found this useful, if you like this video, click “Like” and share it with anyone you know who will find value. My name is Kamal the Builder, and we build your dreams throughout the Silicon Valley.
I ll have more videos coming up – make sure you subscribe to my channel so you can get the notification right away.
You may also enjoy my previous videos:
Planning an ADU: https://www.youtube.com/watch?v=kYShozSRKQs
How to find a good Contractor: https://www.youtube.com/watch?v=KQbS0-FRrQk&t=5s
Contractor RED FLAGS: https://www.youtube.com/watch?v=PxDQLfTDpLQ&t=308s
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