Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In California, home improvement contractors are regulated by the Contractors State License Board (CSLB), which requires contractors to be licensed if they perform work that exceeds $500 in labor and materials. Contracts for home improvement must be in writing and include specific information as mandated by the California Business and Professions Code. This includes a detailed description of the work to be done, the materials to be used, a schedule of payments, a timeline for completion, and insurance details. Contractors must also inform homeowners about their rights to file and enforce mechanic's liens. California law requires a down payment to be no more than 10% of the contract price or $1,000, whichever is less, and contractors must provide a 'Notice to Owner' about lien laws and the owner's protection against claims. Additionally, contractors must adhere to regulations regarding the hiring and management of subcontractors, ensuring that all parties are properly licensed and fulfill their contractual obligations.