Required Notices

Required notice(s) PRIOR to contracting

Remember, BEFORE entering into a contract, contractors must provide the notice(s) described in "Before Signing Contracts".

Home improvement contracts of $500 or more must be in writing. Since both contractors and consumers are bound by everything set down in the contract, contracts should be read carefully before signing. A judge will usually assume that all agreements, both oral and written, are included in the written contract.

Name of salesperson
(if applicable)

Contracts must include this information. A home improvement salesperson is employed by a licensed contractor to solicit and execute contracts outside the contractor's normal place of business. A salesperson may work for more than one contractor but must have a separate home improvement registration for each contractor.

Where to file a complaint

Every contract must include the following statement on all written contracts. The statement must be in at least 10-point type:

"Contractors are required by law to be licensed and regulated by the Contractors State License Board, which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be riled within 10 years of the date of the alleged violation. Any questions concerning the contractor may be referred to the Registrar, Contractors State License Board, Post Office Box 26000, Sacramento, California 95826.11

Warranties

Contractors should be advised of the following information on CSLB complaint law should they wish to include an express, written warranty as part of their contract.

Arbitration

If contractors want potential disputes to be solved via private arbitration, the Arbitration Notice   must be used. Be advised, however, that including such a statement will disallow access to CSLB's arbitration program.

Disputes must comply with certain criteria in order to qualify for a CSLB arbitration program:

• the contractor's license must be in good standing at the time of the alleged violation and at the time of the referral to arbitration;
  
• the contractor cannot have a record of prior violations; and
  
• the parties cannot have previously agreed to private arbitration in the contract or elsewhere.

CSLB arbitration is fast (about 120 days) and informal, and all decisions are binding and enforceable in court. The Board provides the arbitrator (who is an expert in construction matters) and one expert witness free of charge. It also pays all administrative fees.

For more information on arbitration, contact the CSLB by calling 1 (800) 321-2752 and order the following free publications: "Mandatory Arbitration Program Guide" and "Voluntary Arbitration Program Guide."

Business and Professions Code Sections 7159, 7030

Violation of Business and Professions Code

A violation of Business and Professions Code section 7159,

It was President Abraham Lincoln, a lawyer by profession, who said, "Discourage litigation...point out how the winner is often a real loser in fees, expenses, and waste of time."

Of course, one way to cut down on litigation is through a well-written contract. When disputes do occur, however, many of them are resolved efficiently and satisfactorily through CSLB's arbitration program.

CSLB's arbitration program is fast, free and fair. It's also fail-safe for contractors, by allowing those with good records to keep them that way. If a contractor complies with the arbitration decision, the complaint is not disclosable.

Hopefully, all of your customers will be happy and you will never need    CSLB's arbitration program. But if you do, I encourage you to try it. Arbitration is a benefit earned by virtue of your good record. Use arbitration to keep your record that way.