What a California home improvement change order must include

In California, a change order on a home improvement job isn't a formality. Business and Professions Code § 7159 says when it has to be signed and what the contract must tell the homeowner about it, and § 7159.6 says what it must state to be enforceable against the homeowner. Here is what the law says, quoted, with the section for each rule.

1. In writing and signed before the work starts

§ 7159(c)(5):

"A change-order form for changes or extra work shall be incorporated into the contract and shall become part of the contract only if it is in writing and signed by the parties prior to the commencement of any work covered by a change order."

§ 7159(d) says the same of the contract "and any changes to the contract": they "shall be in writing and signed by the parties to the contract prior to the commencement of work covered by the contract or an applicable change order".

In practice: a "yeah, go ahead" in the kitchen is not the written, signed change order the statute describes. Get the signature first, then do the work.

2. Three things a change order must state

§ 7159.6(a): "An extra work or change order is not enforceable against a buyer unless the change order sets forth all of the following:"

1. "The scope of work encompassed by the order."
2. "The amount to be added or subtracted from the contract."
3. "The effect the order will make in the progress payments or the completion date."

The contract itself must tell the homeowner this too. § 7159(d)(13) requires the heading "Note About Extra Work and Change Orders," followed by this statement:

"Extra Work and Change Orders become part of the contract once the order is prepared in writing and signed by the parties prior to the commencement of work covered by the new change order. The order must describe the scope of the extra work or change, the cost to be added or subtracted from the contract, and the effect the order will have on the schedule of progress payments."

And the notice about extra work required by § 7159(e)(3) must tell the buyer that they "may not require a contractor to perform extra or change-order work without providing written authorization prior to the commencement of work covered by the new change order," and that a change order "is not enforceable against a buyer unless the change order also identifies" the same three items "in writing prior to the commencement of work covered by the new change order."

A practical checklist for each change order (the first four come from the statute; the rest is good practice, not a legal requirement):

• what changes (the scope),
• the amount added or subtracted,
• how it affects the progress payments or the completion date,
• in writing and signed by both parties before the work starts,
• good practice: the new contract total, the date of each signature, and a copy for the homeowner.

3. If subcontractors are used: the disclaimer goes on each change order

The current text of § 7159 (as updated 1 January 2026) requires the contract to say whether a subcontractor will be used on the project, with a "[__] Yes [__] No" box (§ 7159(c)(7)(A)). If "Yes" is checked, the contract must carry this disclaimer (§ 7159(c)(7)(B)):

"One or more subcontractors will be used on this project, and the contractor is aware that a list of subcontractors is required to be provided, upon request, along with the names, contact information, license number, and classification of those subcontractors."

And § 7159(c)(7)(C): "If there is a change order during the project, the same disclaimer set forth in subparagraph (B) shall be on each change order."

CSLB's bulletin on new laws for 2026 (#25-04, 29 December 2025) describes SB 517 as requiring contractors who use subcontractors on home improvement projects to disclose them on request (name, contact information, license number and classification), and AB 1327 as requiring the contractor's email address in home improvement contracts and allowing buyers to cancel by email. The bulletin doesn't mention change orders; the rule above is quoted from the statute itself.

4. What happens if a change order misses these

• A change order that doesn't set forth the three items "is not enforceable against a buyer" (§ 7159.6(a)).
• Not complying "does not preclude the recovery of compensation for work performed based upon legal or equitable remedies designed to prevent unjust enrichment" (§ 7159.6(c)). In plain terms, the law leaves other ways to claim payment for work done, but they are harder than an enforceable change order.
• Failing "to comply with any provision of this section" is "cause for discipline" by the licensing board (§ 7159(a)(5)(A)).

What any of this means for a specific job or dispute is a question for an attorney.

5. Small jobs and bonded contractors

Small service and repair jobs follow § 7159.10 instead, but only if all four of its conditions are met: $750 or less, the buyer contacted the contractor to request the work, nothing is sold beyond what's reasonably needed for that problem, and no payment is due or accepted until the work is completed (§ 7159.10(a)(1)). If any condition isn't met, § 7159(c), (d) and (e) apply "regardless of the aggregate contract price" (§ 7159.10(b)). If that's your kind of job, read § 7159.10.

Contractors with a performance and payment bond (or an approved equivalent) have some exemptions under § 7159.5(a)(8); the change-order rules above aren't among those it lists.

6. Using our free form on a California job

Our free change order form has fields for what's changing and why, a price breakdown (the amount added, or a negative line for a credit), the new contract total, the schedule impact and the payment terms for the change, and it prints with signature lines for both of you. Nothing you type is uploaded.

For California, fill it in like this:

• Scope: the "What's changing and why" box.
• Amount added or subtracted: the price breakdown.
• Effect on progress payments or completion date: say how the progress payments change in "Payment terms for this change", and the new completion date in "Schedule impact".
• Subcontractor disclaimer: if your contract says subcontractors will be used, paste the § 7159(c)(7)(B) disclaimer above at the end of the "What's changing and why" box. The form has no separate field for it.
• Signatures: print it or save it as a PDF and have both parties sign before the work starts.

What the form doesn't do: it is a general template, not a California-specific legal form. It doesn't check your change order against the statute, doesn't add any required wording for you, and doesn't collect electronic signatures or keep a copy.

Sources

• California Business and Professions Code § 7159, california.public.law (text updated 1 January 2026; read 20 October 2026). Official text: leginfo.legislature.ca.gov.
• § 7159.6, california.public.law (read 20 October 2026). Official text: leginfo.legislature.ca.gov.
• § 7159.10, california.public.law (read 20 October 2026).
• § 7159.5, california.public.law (read 20 October 2026).
• CSLB, "New Laws Affecting Contractors Starting in 2026" (#25-04, 29 December 2025), cslb.ca.gov (PDF).

This page is general information, not legal advice. It covers change orders only, not everything a California home improvement contract must contain. See also: how to get a change order signed by text and the change order log template.