Home Improvement Contract (35524)

FLASH NEWS!  The Home Improvement Contract has been revised. 

On January 1st 2006, the (California) Contractors State Licensing Board issued new requirements for the HOME IMPROVEMENT CONTRACT (35524) effective at once.  There is no grace period.  Any contractor doing a home improvement job that is $500.00 or more in size must use this new form.  In the event a homeowner has a dispute with the contractor and registers a complaint with the California Bureau of Consumer Affairs and the contract does not contain the new mandatory items now required by law that contractor is subject to discipline.

On January 1st Cowdery’s advised the wholesalers to remove all inventory of old forms from their shelves.  Retail Dealers should now do the same.  The new forms will be back in stock on March 1st.  In order to keep the same price point the replacement item count will be 10 sets per package.  The Home Improvement Contract has grown to 7 pages by the time all the necessary additional notices, terms and conditions are added in.  The Cancellation Notice in duplicate has also been attached to the total contract set in the event the Contractor’s customer decides to exercise his Three Day Right to Cancel.

The new contract advises the homeowner to ask for “Lien Releases” as he makes progress payments.  To help a contractor get started using these new contracts we have put together a Kit (35528) containing the forms he would most likely need and an information sheet describing how each form is typically used.  They will be at your wholesaler on March 1st as well.