California Sales Tax for Interior Designers -Types of Construction Contracts

Most construction contracts fall into one of two basic categories.


In a lump-sum contract, you generally bill your client one set, agreed upon amount for all charges associated with the work.

In a time and materials contract, you generally bill your client separate amounts for labor (time) and for materials and/or fixtures you furnish.


Source: California Department of Tax & Fee Administration (CDTFA)

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