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Helpful Contractor Terms and Definitions
The Initial payment made to establish the contract. This payment can not exceed 10% or $1000 whichever is less. Typically this is non refundable after 3 days in California.
A payment that helps the contractor keep cash flow moving as well as your project. These are usually made after project milestones. Milestones could include, Demolition, Materials arrive at job site, and Hardscape completion.
This is a written and signed addendum to the scope of work originally outlined in the first contract. This can be created by either the property owner or the contractor, but will require both signatures to be valid.
The original outlined written agreement between the property owner and contractor. This should include scope of work, drawings in applicable, payment schedules, site address and any other factors you would like clearly outlined about your project prior to starting the project.
Stop Work Order
This is a form than can be submitted to the contractor or homeowner pausing the project completely until an issue is resolved.
Should only be made at the completion of the contract once all line items have been satisfied.
This is a lien that can be placed on your property due to non payment. Your property can also be leveraged by a contractors vendors if materials for your project do not get paid for by the contractor.
This is a professional in their designated trade certified by the state. They have completed a background check, a trade test and a law test. It is required to be a licensed contractor in order to conduct work in the amount of $500 or more at one job site.
Contractors State Licensing Board. The regulatory board that controls all licensing for contractors in the state.
This is an insurance policy required by the state to protect the property owner. If a contractor does work incorrec or abandons a job you as a property owner can request their bond be used to complete your project. This info can be found on the CSLB website by searching your contractors license number.
This is an insurance policy that is required if the contractor is employing individuals other than themself. This is to protect the employee against a loss caused by a work related injury on your property.
This insurance policy, also known as GL insurance, is in place to protect your property. For example a contractor hits a gas line and blows up your garage, this insurance policy will cover the damages. Or if an irrigation line was to fail and flood your basement, again the generial liability insurance would cover the damages.