Legal Question in Construction Law in California

Commercial Construction Deposits

Can a contractor or an engineer require

a deposit larger than 10% of the

contract price on a commercial project?


Asked on 8/31/07, 4:14 pm

2 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

Re: Commercial Construction Deposits

He can require anything he likes. That's what contracts are all about.

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Answered on 9/03/07, 5:06 pm
Michael Meyer Law Ofc. Of Michael J. Meyer

Re: Commercial Construction Deposits

Yes, that restriction only applies in the home improvement context. See Business & Professions Code 7159.5.

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Answered on 8/31/07, 4:44 pm


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