CSLB Contractor's Law & Business Practice Exam

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Prepare for the CSLB Contractor's Law and Business Exam. Use flashcards and multiple choice questions, each with hints and explanations. Enhance your exam readiness!

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If a contractor changes a building's design without the owner's approval, what might the contractor be liable for?

Extra construction costs only.
Loss of market value or repair costs.
Nothing, if the owner does not like the change.
Legal fees related to the change.

The correct answer is: Loss of market value or repair costs.

When a contractor changes a building's design without the owner's approval, they may be liable for loss of market value or repair costs because unauthorized changes can lead to significant issues affecting the property. Such changes could decrease the property's overall value, as it might not meet the owner's expectations or relevant zoning laws and building codes. In addition, if the modifications result in structural problems or necessitate alterations to correct the issues, the contractor may also be responsible for those repair costs. This liability emphasizes the importance of obtaining proper approvals and communicating effectively with the owner throughout the construction process. The financial repercussions of unauthorized changes could easily surpass the immediate costs associated with construction, including the potential need for extensive repairs to revert to the original design or to rectify any mistakes arising from the changes made.