Need a Home Services / Appliance Repair Contract in California? AroundWire Can Help

In California, contracts for home services and appliance repair are subject to specific legal and regulatory requirements designed to protect both consumers and service providers. Contractors engaging in appliance repair must hold a valid California Bureau of Electronic and Appliance Repair (BEAR) license, and any work exceeding $500 in labor and materials requires a written contract under the Contractors State License Board (CSLB) regulations. Contracts must clearly outline the scope of work, total price, payment schedule, estimated start and completion dates, and include statutorily mandated notices regarding the right to cancel (typically three business days for residential services). Providers are often required to carry general liability insurance and, if employing others, workers’ compensation coverage. Risk factors include liability for property damage or personal injury, making proper insurance coverage and indemnification clauses essential. Payment terms commonly include an initial deposit (capped at $1,000 or 10% of the contract price, whichever is less), with subsequent payments tied to project milestones or completion. California law prohibits "pay-if-paid" clauses in most residential contracts. Dispute resolution often favors mediation or arbitration, as stipulated in the contract, to avoid litigation. Local ordinances and consumer protection statutes may impose additional requirements, so contracts should be reviewed for compliance with both state and municipal regulations.