Lathcheck checklist › Rule explainers
Bond notice and the approved-bond exemption
Not legal advice. This page is a plain-English summary for general information. It may be incomplete, and the statute text controls. Not affiliated with, endorsed by, or approved by the Contractors State License Board or any government agency. For advice about your contract, consult a licensed California attorney.
What the statute says
Short quotes and close paraphrases; “…” marks omitted text. Read the full section at the link.
In close proximity to the signatures of the owner and contractor, the contract shall contain a notice stating that the owner or tenant has the right to require the contractor to have a performance and payment bond.
A contractor furnishing a performance and payment bond, lien and completion bond, or a bond equivalent or joint control approved by the registrar … is exempt from paragraphs (3), (4), and (5), and need not include, as part of the contract, the statement regarding the downpayment … the details and statement regarding progress payments …, or the Mechanics Lien Warning …
In plain English
- Every home improvement contract needs a notice, near the signatures, that the owner or tenant can require a performance and payment bond.
- Separately, a contractor who has a bond or joint control approved by the CSLB registrar is exempt from the downpayment cap and the progress-payment rules in §7159.5(a)(3)-(5), and may leave out the downpayment statement, the progress-payment details and statement, and the Mechanics Lien Warning.
- Tick the bond box in the checklist only if that approved bond or joint control applies to this contract.
What the checklist looks for
- Looks for the bond-notice wording.
- When the bond box is ticked, skips the items the exemption covers and shows a note.
What it can't check
- Whether your bond is approved or covers this job.
- Whether the notice sits close to the signatures.
Sources
Open the checklist (runs in your browser; nothing is uploaded).