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(a) Service contract means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance, replacement, or repair of consumer goods and may include provisions for incidental payment of indemnity under limited circumstances, including, but not limited to
Most often, Service Contracts include details such as deadlines and payment agreements. Contracts also usually define the work to be performed and what process needs to take place if changes need to be made. These are legal agreements and can be challenged if needed.
One states, A time and materials contract for construction is perfectly legal in California, if you agreed to it . . . and another states, Generally, T&M contracts for home improvement projects are allowed.
Service contracts ensure that your equipment is maintained in optimal condition, mitigating possible failures and reducing the probability of post-outage scrambles to arrange for emergency restoration.
The contract should describe, in detail, the products to be used and how the work will be performed, i.e., size, color, who will be doing what work, amounts of materials provided, manufacturer model number, etc. There must be a detailed, written payment schedule in the contract.
As the homeowner who is commissioning the project, it's reasonable to withhold at least 10% as your final payment. Avoid paying in full upfront, and definitely avoid paying anything before the contractor has evaluated the project in person.
Contractors cannot ask for a deposit of more than 10 percent of the total cost of the job or $1,000, whichever is less. (This applies to any home improvement project, including swimming pools.) Stick to your schedule of payments and don't let payments get ahead of the completed work.
If you're buying a new or used car, the salesperson might try to sell you an auto service contract to help protect against unexpected or expensive repairs. While a service contract might sound like a good idea, it could duplicate coverage you have through your manufacturer's warranty.
Service and Repair Contracts in California are construction contracts between a homeowner or tenant and a contractor. These contracts are used to establish the details of home improvement work.
Under California law, a contractor can require a down payment of $1,000 or 10 percent of the total cost, excluding finance charges, whichever is less.