3. Notices. The Home Improvement Law requires that the contractor provide the homeowner with various information regarding both the contractor and the law.

• The contract must contain a statement regarding the existence and status of the contractor's license.
• A contractor's whose license has been suspended or revoked twice in an 8-year period, must disclose that information in writing to the homeowner.
• The contract must contain a legally mandated statement regarding mechanics liens, bonds and join control mechanisms. Since the statement provides good general information, a copy is attached hereto for the reader's convenience.
• The contract must contain a legally required required notice, disclosing where and how to file a complaint with the Board.
• An additional notice must be given where the residence is being pledged to secure payment of the home improvement contract.

4. Remedies. The Home Improvement Law imposes penalties for violation of its various provisions, including suspension or revocation of a contractor's license. Since his license is a contractor's "meal ticket," this should be a powerful incentive for compliance. Additionally, violations of the Law can constitute a misdemeanor punishable by a fine of up to $5,000 or by a prison term of up to one year, or both.
While the Home Improvement Law does not expressly create any private rights, a Court would nonetheless likely accept its provisions as stating a reasonable standard of performance, the breach of which may give rise to a claim for damages.

Finally, the Home Improvement Law, in conjunction with other provisions of California law, could allow the homeowner to cancel the contract. Under the Home Solicitation Sales Act, just about any consumer transaction (including a home improvement contract) which takes place in the buyer's home or away from "appropriate trade premises," entitles a buyer three business days to cancel-for any reason or for no reason. The reference to "appropriate trade premises" are generally understood to encompass contracts or offers made somewhere other than the seller's place of business.

The three business day right to cancel generally commences from the date of execution of the contract. However, if the contractor has failed to provide the statutorily-required notice regarding right to cancel, then the cancellation period begins when the contractor has complied. If the contractor never complies, then the homeowner may cancel the contract at anytime. (In that case, the contractor may still be entitled to a payment for "the reasonable value of its services," although such claim would be outside of the contract).

5. Conclusions. In our experience, many contractors are either ignorant of or simply choose to ignore the obligations imposed on them by the Home Improvement Law. In so doing, they fail to provide the required notices, to include the required contractual provisions and they may demand down payments and other financial consideration in excess of that which law allows. Should a dispute ever arise in the project, the contractor would run the risk of having the contract set aside and losing valuable rights, such as arbitration.

From the homeowner's perspective, failing to demand adherence with the Home Improvement Law could mean assuming the risk of an excessive downpayment, could subject the homeowner to unexpected price increases, hidden costs and unwarranted delays, and could result in the loss of valuable information intended to protect the consumer.

Thus, in the event of a failure to comply with the Home Improvement Law, both sides potentially lose.

The reader should note that the most popular form construction contracts (including the standard AIA contract) does not address many of the requirements of the Home Improvement Law. Typically, the parties will require a targeted contract or addendum drawn for this specific type of project.