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    #31
    Originally posted by bkludecke View Post
    In CA, the Business and Professions Code, Division 3, Chapter 9, Article 10 deals with Home Improvement Business. A "Home Improvement", as defined by Section 7151 "...means the repairing, remodeling, altering, converting, or modernizing of, or adding to, residential property and shall include, but not be limited to, the construction , erection, replacement or improvement of driveways, swimming pools,including spas and hot tubs, terraces, patios, awnings, storm windows, landscaping, fences, porches garages, fallout shelters, basements, and other improvements of the structures or land which is adjacent to a dwelling house...." It goes on and on to cover just about everything else you can think of.

    Nowhere does this section or article say or imply that the rules for a home improvement contract apply to a new construction of a dwelling. Hope this helps.
    Thank you

    Originally posted by GoldDigger View Post
    A significant difference between remodelling (most often of a residence currently occupied by the owner) and new construction (most often speculative building for a company planning to sell to eventual owner) is the set of means available to the contractor to protect their interest if something goes wrong.

    Sent from my XT1585 using Tapatalk
    So how does one deal with huge layout of expenses in a remodel , The window replacement in a McMansion. The cost outlay if you cannot take a deposit over 1k could leave a contractor in stress. In resi electrical usually you don't have a huge layout like that.

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      #32
      Just keep the $$$ ahead of the job....~RJ~

      Comment


        #33
        Originally posted by hbiss View Post

        Every time somebody talks about California there's always a horror story about stupid laws and regulations. And you wonder why I always criticize the state. Why the hell would anybody want to work in California?? Or even live there?

        -Hal
        we get that you hate it, and are as far from it as you can get.
        we support you in that decision. someone has to live here.
        i'll live here, so you don't have to. i just fell on your grenade.

        you are welcome.

        i've eaten $500 from 1 dirtbag. wasn't worth going after.
        three months later, he was doing a building shell for one of my best customers.
        i've been doing all their stuff for 4 years now.
        i happened upon this info, and called the head of construction.
        told him how it rolled, and that i only got paid after i leined his bond.
        the reply was.... "no chit! this is the last job he does for us....."

        the only person you cheat in life, is yourself.

        hold my beer. i've got california handled for you.
        ~New signature under construction.~
        ~~~~Please excuse the mess.~~~~

        Comment


          #34
          Originally posted by Sierrasparky View Post
          Bob ,
          Is / Was there a CA code section that allowed a greater than 1000 deposit for a new home on undeveloped land. Or does the Home improvement contract laws apply to the new home also.
          This question was just posed to me by a fellow contractor. I personally do the 1k max or nothing up front.

          However what if you are a window contractor, You have to place special order 100k worth of product for a Mcmansion without any more than a 1k. ?
          for residential, i usually went half up front, half when done.
          never had a raised eyebrow. never had a problem.
          we split the risk, and it's fair.

          this technique was an adaptation of a strategy taught me
          by a pharmaceutical salesman, in the bad old days.

          how do you divide up $10,000 worth of class II controlled substance,
          without a scale?

          simple. one person makes two piles, the other one picks the pile they want.
          ~New signature under construction.~
          ~~~~Please excuse the mess.~~~~

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            #35
            Originally posted by Fulthrotl View Post

            pharmaceutical salesman,


            I laugh because I've had the same experience, and ... It's a good methodology.

            Comment


              #36
              Originally posted by Sierrasparky View Post
              Thank you



              So how does one deal with huge layout of expenses in a remodel , The window replacement in a McMansion. The cost outlay if you cannot take a deposit over 1k could leave a contractor in stress. In resi electrical usually you don't have a huge layout like that.
              I suppose you hope your suppliers grant you credit to purchase items, and that the client doesn't stiff you or drag out payment. Chances are supplier terms will be 30 days.

              If you deliver goods to the site, I think you can at least bill client for the value of those items, then if something happens and you don't finish the project you at least have the expense of those items covered, maybe even some markup included on them to either count as profit or at least help on any other losses you may have taken.
              I live for today, I'm just a day behind.

              Comment


                #37
                Originally posted by oldsparky52 View Post


                I laugh because I've had the same experience, and ... It's a good methodology.
                I use this with my sons. A real eye-opener for them.

                Comment

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