Abdulaziz, Grossbart & Rudman

CONTRACT CLAUSES REQUIRED FOR CALIFORNIA CONTRACTORS - Effective January 1, 2006

The following are clauses that are required by the Contractors License Law. In addition to swimming contracts, there are essentially three levels of requirements. One level are items that are required on all construction contracts including commercial. The second level are clauses that are required for new residential contracts as compared to contracts where work is being done on existing residential property. The last level and most extensive, are clauses that are required on all home improvement contracts in excess of $500. Each level is complete in and of itself.

These are clauses that are required by law. However contracts for construction should contain numerous other clauses for further clarification and protection. We have provided the actual wording that can be used as necessary. We have also indicated where in the law the specific language is required. However, you should download only the law and not the references.

Posted are the required clauses for Home Improvement contracts in California. The document complies with California Law for Home Improvement contracts entered into on or after January 1, 2006. The attached is a short outline of what is required by law. It is clearly not otherwise complete. You should seek the aid and advice of a competent construction attorney before utilizing this form. We at Abdulaziz, Grossbart & Rudman have been handling this matter and writing contracts pursuant to the new Laws.

Click here for the new California Law specifying what is required for Home Improvement Contracts - You will need adobe acrobat to view this PDF document

IMPORTANT NOTICE

WELL IT LOOKS LIKE IT'S FINALLY HAPPENED

“The Grand-Son Of SB 30 Has Arrived”

By: Sam K. Abdulaziz
Abdulaziz, Grossbart & Rudman

If at first you don’t succeed, try, try again. As many of you know, SB 30, which was signed into law in 2004 (but not effective until July 1, 2005), was very poorly drafted. Based on the screaming of some industry members, the Contractors’ Board agreed to put off implementation until January 1, 2006 by sponsoring, as emergency legislation, SB 1113 (The Son of SB 30) so that it would not become effective until January 1, 2006. This also changed some of the language in SB 30 and also bought the Board some time to clean up SB 30 even further. The Legislature had initially drafted something that was hard to understand and was inconsistent. So, the Legislature was given another chance.

The Governor signed AB 316, which attempts to clean up the poor language of SB 30 and the emergency SB 1113. It also makes the home improvement contract requirements more understandable. As always, when there are mammoth changes in legislation, there are going to be problems. However, let’s face it, the new language is clearly preferable to what the original drafters had put into law. Since all home improvement contractors are required to have new contracts, as of January 1, 2006, it is better to have this more preferable language.

A little history may be in order. Service and repair contractors had been screaming for years that they cannot operate legally. Finally, the Contractors' State License Board came around and agreed to legislation that would do away with the Three-Day Right To Rescind in certain limited situations. Our version applied to work that was all to be done in one day, was requested by the owner (without any up selling), and payment would be C.O.D. This is simple, it sure looks like it makes sense for both the owner and the contractor. What owner do you know that wants to wait three days to have his or her toilet fixed? Evidently, the Legislature knows many such people.

Unfortunately, the powers that be (and I do not really know who those are or who put them in power) now require much, much more -- although there is some help with respect to the Right To Rescind.

More regrettably, in 2004 the drafters took it upon themselves to re-write the entire Home Improvement Act. When they did that, they wrote it so that it was more incomprehensible and more internally inconsistent than before. But, why should the drafters care since they do not have to live in that world? As a result their friends had to go in and do some clean-up work. Hence, covering it up with AB 316.

Our office worked with the Contractors’ Board for over a year and we believe that we may have come up with something much better than SB 30 (although, no where near what we would have liked).

Remember, you now have a new Home Improvement, Swimming Pool, Service and Repair, and even New Residential Contracts as of January 1, 2006. See Our Special Section Entitled 2007 Contract Requirements - You will need adobe acrobat to view this PDF document

NEW CONTRACTS

It is almost impossible to explain how to write the new construction contracts. As an example, we have reviewed a contract prepared by a knowledgeable California construction attorney. Approximately one half of it was deficient.

If you are interested in a contract, we can write a specific construction contract that will comply with the law as of January 1, 2006. If you are interested, please tell us your trade and we will send you a trade specific questionnaire along with what that contract will cost. It will be much more specific and customized than any preprinted form contract.

In addition, preprinted form contracts can be purchased from BNI-Building News, 1-888-BNI-BOOK; 990 Park Center Drive, Suite E, Vista, CA 92081-8352, (760) 734-1113; 1612 South Clementine St., Anaheim, CA 92802-2901, (714) 517-0971; and 10801 National Blvd., Los Angeles, CA 90064-4139, (310) 474- 7771; Builders Book, Inc., 8001 Canoga Avenue Canoga Park, CA 91304, or in the U.S., call Toll Free: 1-800-273-7375. Outside the U.S.: 1-818-887-7828. We understand Builders Books’ contracts will be compliant with the new laws. However, it is a generic contract.

New Home Improvement Requirements for 2007

You will need Adobe Acrobat reader in order to view or print the document listed above.

Abdulaziz, Grossbart & Rudman PRESENTS
A CONSTRUCTION FORM WORKBOOK
Along With An Easy To Use Disk

The Law Offices of Abdulaziz, Grossbart & Rudman has compiled a copyright protected comprehensive Mechanic’s Lien, Stop Notice, and Payment Bond primer, complete with seventeen of the most common forms used by contractors and material suppliers to protect themselves, and to perfect their rights to record or file Mechanic’s Liens, Stop Notices, or make claims on Payment Bonds. The workbook includes both printed forms, as well as a CD-Rom containing each of the forms in a “fill in the blank” format. You will need Adobe Acrobat Reader in order to view and utilize the forms. The workbook provides easy to use instructions and links for each form. These simple to use forms allow the user to complete the fields and then print them on inkjet or laser printers when ready to send, file, or record, as appropriate.

The package includes:
• Our Mechanic’s Lien, Stop Notice, and Payment Bond workbook, with links to each of the forms that are included in the package, for a “contractor-friendly” explanation of the form and its use;
• A CD-Rom, containing an electronic version of the workbook and each of the forms;
• Printed and electronic fill in the blank versions of:

Easy to understand flow charts;
California Preliminary 20-Day Notice – Private Works;
California Preliminary 20-Day Notice – Public Works;
Attachment to Preliminary Notice – Private Works (for subcontractor’s, laborers);
Mechanic’s Lien;
Stop Notice (private works or public works);
Release of Mechanic’s Lien;
Release of Stop Notice (private works);
Release of Stop Notice (public works);
Notice to Bonding Company;
Notice of Extension of Credit;
Miller Act Notice;
Unconditional Wavier and Release Upon Progress Payment;
Unconditional Waiver and Release Upon Final Payment;
Conditional Waiver and Release Upon Progress Payment;
Conditional Waiver and Release Upon Final Payment;
Notice of Completion;
Notice of Cessation; and
Notice of Non-Responsibility.

Abdulaziz, Grossbart & Rudman will also offer update pricing for all its clients who purchase this package.

The Workbook Package can be purchased directly from Abdulaziz, Grossbart & Rudman for the low price of $149.00, shipping included. Quantity discounts are available.

Protect yourself and your right to payment by the use of the appropriate forms.

Please go and see the table of contents or to the order form click here

For more information please call 818-760-2000 or send an email to Info@AGRLaw.net

The information and comments throughout this website are intended to be of a general nature. Our comments/advice should not be relied upon without your seeking the aid and advice of legal counsel who will have the opportunity to take the time to research all your issues.

Abdulaziz, Grossbart & Rudman provides this information as a service to its friends & clients. It is of a general nature and should not be used as a substitute for specific legal advice. Any and all information set forth on our website relates solely to California law. The information is not relevant and not applicable in any other state or jurisdiction.

The firm can be reached at:
Abdulaziz, Grossbart & Rudman
P.O. Box 15458
North Hollywood, CA 91615-5458
(818) 760-2000
Facsimile (818) 760-3908 or by E-Mail at Info@AGRLaw.net

Please note that any information you provide to us via e-mail may be viewed by others and therefore, it is not a privileged communication.