California Change Order Requirements for Home Improvement (B&P §7159)
California Business and Professions Code section 7159 sets the rules for home improvement contracts. It covers change orders too. The short version: a change order counts only if it is written and signed by both parties before the work it covers begins.
What the statute says
Section 7159 says a change-order form for changes or extra work becomes part of the contract "only if it is in writing and signed by the parties prior to the commencement of any work covered by a change order."
The contract itself must carry a note headed "Note About Extra Work and Change Orders" with this text:
"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 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."
Read the full text at California B&P Code §7159.
What each change order should show
- Scope. What is being added, removed or changed, specific enough that someone else could price it.
- Cost. The amount added to or subtracted from the contract. Credits count.
- Effect on progress payments. How the change moves the payment schedule. Days added to the job usually go here too.
- Both signatures, before the work. Signed by the homeowner and by you. A text that says "go ahead" is not a signed change order.
- Your license number. Section 7159 already requires your name, business address and license number on the contract. Put them on each change order so it stands on its own.
Why it matters
If the change order is not signed before the work starts, you may have trouble collecting for that work, and the homeowner has grounds to dispute the final bill. A complaint to the Contractors State License Board also looks at your paperwork. Signing first costs a few minutes. Collecting after a dispute costs much more.
The same section caps the down payment at $1,000 or 10 percent of the contract price, whichever is less. Do not use a change order to collect an extra deposit that the contract could not.
Doing it from the job site
Most changes come up on site, with the homeowner at work. You can write the change order on your phone, text the link, and have it signed before you start. The signed PDF records the time in UTC, the signer's name and IP address, and a SHA-256 hash of what they saw.
This page is a plain-language summary, not legal advice. Laws change. Check the current statute and talk to a California construction attorney about your contracts.