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ADU contract checker: ten items and the deposit cap

Mark each item as present or missing, then type the contract price and deposit to check the California cap.

The ADU contract checker marks ten items a sound ADU contract should contain, from the license number and progress payments tied to work to change orders, allowances and lien releases, and lists what is missing.

Type the contract price and deposit to check them against California’s cap: the lesser of $1,000 or 10 percent of the price (Bus. & Prof. Code § 7159.5).

Contract check

Price and deposit start empty.

— Items present
— Missing
— Deposit cap

What this assumed —

A checklist, not legal advice. The cap is California law; other states differ.

How this calculator works

Present = items marked Yes. Deposit cap = the lesser of $1,000 or 10% × contract price (California Bus. & Prof. Code § 7159.5).

What each input means

Inputs on this tool, in the order they appear on the form.
InputWhat it is actually asking
Progress payments California requires each one stated in dollars and tied to the work it pays for (§ 7159).
Change orders Written and signed before the work (§ 7159).
Deposit The first payment before work starts.

Worked examples

Including one where the naive answer misleads, which is the example most calculators leave out.

A deposit over the cap

Type the price and a deposit above the cap. The tool says so; ask the builder to restructure.

A contract with no exclusions list

Mark exclusions No. Ask what is not included before you sign.

What changes the result

Each missing item is a question to ask, not a verdict on the builder.

When not to use this

Do not treat a full score as legal approval. See the ADU contract checklist and consider legal review.

Questions this calculator answers

What is the maximum ADU deposit in California?
$1,000 or 10 percent of the contract price, whichever is less.
Does the cap apply outside California?
No. Other states have their own rules.
What if the contract has no dates?
California requires approximate start and completion dates in a home improvement contract.
Is this legal advice?
No. It is a checklist.

Sources and methodology

Figures dated 27 October 2026. Last reviewed .

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