Schedule of progress payments

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.

Bus. & Prof. Code §7159(d)(9)

If payments, other than the downpayment, are to be made before the project is completed, the heading “Schedule of Progress Payments” … [and a schedule] in dollars and cents specifically referencing the amount of work or services to be performed and any materials and equipment to be supplied.

Bus. & Prof. Code §7159(d)(9)(C)

“… IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT.”

Bus. & Prof. Code §7159.5(a)(5)

Except for a downpayment, the contractor shall neither request nor accept payment that exceeds the value of the work performed or material delivered.

In plain English

If any payment after the downpayment is due before the job is done, the contract needs a “Schedule of Progress Payments” with each payment in dollars and cents.
Each payment should be tied to specific work, services, materials or equipment, not to a date or a number like “Payment 3”.
Apart from the downpayment, you can't ask for or take more than the value of the work done or materials delivered so far.
If the only payment after the downpayment is due at completion, no schedule is needed.

What the checklist looks for

Payments in dollars, and whether the downpayment plus payments add up to the contract price (shown as “review”).
Descriptions that look like dates or numbers instead of work (a pattern guess; shown as “review”).
Wording like “upon ordering” or a large early payment that may come before the work (a pattern guess; shown as “review”).
The heading and capital-letter statement, when payments are entered.

What it can't check

Whether the work for each payment is actually done when you bill it.
Type size and placement.

Sources

Bus. & Prof. Code §7159(d)(9) (https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=7159)
Bus. & Prof. Code §7159.5(a)(4), (a)(5), (a)(8) (https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=7159.5)

Open the checklist (runs in your browser; nothing is uploaded).

Last checked against the statute text on leginfo.legislature.ca.gov on 2026-10-28. Laws change; check the current text. Lathcheck is a working name and prototype.