# Are Cost Plus Home Improvement Contracts Illegal in California?



## Will Path (Apr 4, 2006)

Effective January 1, 2006, all home improvement contracts in California must: "include the agreed contract amount in dollars and cents. The contract amount shall include the entire cost of the contract, including profit, labor, and materials, but excluding finance charges."

Does this effectively make cost plus home improvements contracts illegal in California?


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## jproffer (Feb 19, 2005)

I'm not from CA so I don't know and haven't (and wouldn't have) heard. But from the couple sentences you posted it sure sounds that way to me.


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## Mouldings&More (Mar 19, 2006)

I believe a contract between two people can not be broken by the state or states within. Do not quote me on this as I am not a lawyer so please do your due diligence.


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## jproffer (Feb 19, 2005)

If a contract violates local, state, or federal laws, the laws prevail. You can't contract yourself out of following the law.


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## Mouldings&More (Mar 19, 2006)

State law you can. Ever fight a speeding ticket? Common law prevails all the time(Murder, tax evasion, etc..)


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## jproffer (Feb 19, 2005)

LOL....well then I'm just gonna sign a contract with one of my buddies that says he can drive as fast as he wants to, and he can sign one with me for the same.

Think that'll work?:laughing:

You absolutely can NOT contract yourself out of the law. If the law says you can only collect 10% down (such as CA), then that's ALL you can collect...period!! If you collect more (or try to) and someone reports you, you'll be fined regardless of the fact your contract says "50% down payment required"...and that is a STATE law, 'cause it's not that way in IL.

(didn't say you couldn't fight it...but having a CONTRACT agreement that says you don't have to follow the law is meaningless)


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## Mouldings&More (Mar 19, 2006)

between two parties not three.


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## License Schools (Mar 8, 2014)

I assume that by cost plus home improvement you mean time and material? If so the law in California is very clear about Home Improvement contracts. See the California Business and Professions Code 7159 (http://www.lexisnexis.com/clients/caperlaw/CA_Contractors_2014.pdf - PAGE 407). A time and material contract is not permitted at all. This is the law of the land in this state and it cannot be violated even if the owner agrees to different terms. Hope this helps.


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## jproffer (Feb 19, 2005)

I hope he's figured it out in 8 years 







I'm just givin' ya a hard time...

I'm sure that's good info for others


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## License Schools (Mar 8, 2014)

LOL. It took some time to research!

I noticed after I posted it how old it was. I'm new at this. I do hope it helps someone else though.


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## jproffer (Feb 19, 2005)

We all do it. No worries.

I'm sure it'll be helpful to someone.


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