Blog

California Just Changed the Rules on Private Construction Contracts

California Just Changed the Rules on Private Construction Contracts

California’s updated Civil Code took effect January 2026 — and if you’re a residential contractor, you need to know what changed.

Here’s what’s new:

→ Retention caps are now tighter on private projects
→ Change orders must follow stricter disclosure and timing rules
→ Homeowners can now cancel contracts via email within 3 days (AB 1327)
→ Subcontractor disclosures are mandatory on qualifying jobs (SB 517)

These aren’t suggestions. They’re law.

Miss a disclosure? You’re exposed.
Wrong change-order language? Your contract is vulnerable.
Homeowner cancels outside the window? You may still be liable.

Most contractors are running on old contracts right now. Old templates. Old language. Old assumptions.

If your contracts haven’t been reviewed since January 2026, they likely don’t comply.

Get your paperwork reviewed. Before a dispute forces the issue.

📅 Book a consultation
📧 info@accountingsolutionsllp.com