Written contract rules in California
Contractors operating in California are required by statute to provide a written contract for jobs valued over $500. The contract must include scope, total price, payment schedule, start and completion dates, and (where applicable) the contractor's license number.
Right-to-cancel notice
For home-improvement and door-to-door sales, California requires the contract to include a written notice of the consumer\u2019s right to cancel within 72 hours. The notice must be conspicuously displayed and accompanied by a separate cancellation form.
Late fees on past-due invoices
The maximum late fee a contractor may charge in California is 1.5% per month under Cal. Civ. Code §3287; §1671 (penalty rule). The fee must be disclosed in the contract or on the invoice itself before it can be enforced. Late fees must be reasonable and in written agreement; statutory interest 10%/yr otherwise.
Required invoice fields
- Contractor business name, address, and phone number
- Contractor license number (where state law or trade requires)
- Customer name and project address
- Itemized scope of work, materials, and labor
- Total price, payment schedule, and due date
- Late-fee disclosure (max 1.5% per month under Cal. Civ. Code §3287; §1671 (penalty rule))