California Contractors License Law Practice Exam 2025 – All-in-One Guide to Master Your Contractor Licensing!

Question: 1 / 400

When is a contractor required to have a written contract?

For any project over $250 in value

For projects of any value

Only for residential projects

For any project over $500 in value

A contractor is required to have a written contract for any project over $500 in value. This requirement is established to provide clarity and legal protection for both the contractor and the client. A written contract helps to outline the scope of work, the payment terms, timelines, and any specific responsibilities of both parties. By exceeding this specified amount, the risk of misunderstandings or disputes increases significantly, making it essential to have a formal agreement in place.

For projects that are $500 or less, while it is still advisable to have a written agreement, the law does not mandate it. This threshold is specifically designed to protect larger transactions where the financial implications are more substantial, ensuring that both parties have a clear reference point in case any issues arise during or after the project's completion.

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