For how long must contractors keep records such as contracts and receipts?

Contractors in California are required to maintain records such as contracts, receipts, and other relevant documents for a minimum of three years. This timeframe aligns with state regulations designed to ensure accountability and transparency in construction practices. Retaining records for this duration allows for adequate verification of work performed, compliance with contractual obligations, and facilitates the resolution of any potential disputes that may arise after the work is completed.

Keeping documents for three years is essential not only for protecting the contractor's interests but also for safeguarding the client's rights, as it provides a clear account of the completed work and associated costs. This record retention rule helps establish a reliable historical track of business activities that might be relevant for audits, legal matters, or client inquiries.