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Situation: Contractor has verbal agreement with client to do…

Situation: Contractor has verbal agreement...
Situation: Contractor has verbal agreement with client to do remodel project. No written contract was ever made. Contractor preceded to do the project which was very extensive, overall approximately 250 K. Whenever contractor needed funds a verbal request was made and funds were provided, via check, to contractor. Contractor attempted to provide receipts for but owner declined them. When the job was mostly completed owner decided they no longer wanted to work with contractor. They dismissed contractor but kept the carpenters who were working with the contractor at that time. Now, 2 months later owner wants receipts, time cards and essentially written documentation of the monies they provided. Contractor has a few receipts but did not keep them all, does not have time cards and had paid carpenters in cash. Is the contractor legally required to provide this information at this point? Does providing funds to the contractor indicate the owner was accepting of the verbal terms of this agreement? What recourse is available to the owners?
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Answered in 30 minutes by:
3/11/2018
legalgems
legalgems, attorney
Category: CA Real Estate
Satisfied Customers: 13,855
Experience: Just Answer consultant at Self employed
Verified
A contract mus be in writing in california for projects greater than $500. Please seehttp://www.cslb.ca.gov/Consumers/Hire_A_Contractor/Home_Improvement_Contracts/What_Is_A_Contract.aspxThere is no requirement that the owner be provided time cards and receipts unless the contract specifically states that requirement.
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Here is the relevant Business and Professions code:http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=7159
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Customer reply replied 5 months ago
Thank you. Just to be clear the project was Time and Materials, not a bid. Does that change your response? Also what liability does contractor have for not following contract law ( necessary if over $500)?
it applies to a time and materials project as well. The contractor may be disciplined by the CSLB and that may include fines and, for egregious or continuous violations suspension or revocation of one's license.
legalgems
legalgems, attorney
Category: CA Real Estate
Satisfied Customers: 13,855
Experience: Just Answer consultant at Self employed
Verified
legalgems and 87 other CA Real Estate Specialists are ready to help you
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Customer reply replied 5 months ago
Thank you!! I am good for now. Have a great day.
You are most welcome. Thank you for the positive rating. Enjoy your day as well!
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