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Hiring a Contractor?

Maryland Law requires every person acting as a contractor in the State to have a Maryland Home Improvement Contractors (MHIC) License.

It is a criminal offense to do home improvements without a license and there is no protection from MHIC Guaranty Fund for the homeowner who uses an unlicensed contractor.    An owner may recover compensation from the Guaranty Fund for an actual loss that results from an act or omission by a licensed contractor as found by the Home Improvement Commission or a court of competent jurisdiction.

Find out who is licensed at   http://www.dllr.state.md.us/pq/
or
call 410-230-6309 or 1-888-218-5925.

COMMON TERMS

Contractor means a person, other than an employee of a property owner, who performs or offers or agrees to perform a home improvement for a property owner.

Contractor license means a license issued by the Maryland Home Improvement Commission to act as a contractor. A Contractor license is not required for an architect, electrician, plumber, heating, ventilation, air-conditioning, or refrigeration contractor who currently is licensed in that occupation or profession under State or local law

Home improvement means:   the addition to or alteration, conversion, improvement, modernization, remodeling, repair, or replacement of a building or part of a building that is used or designed to be used as a residence or dwelling place or a structure adjacent to that building; or an improvement to land adjacent to the building.

Home improvement includes:

• construction, improvement, or replacement, on land adjacent to a building, of a driveway, fall–out shelter, fence, garage, landscaping, deck, pier, porch, or swimming pool
• a shore erosion control project, as defined under § 8–1001 of the Natural Resources Article, for a residential property;
• connection, installation, or replacement, in the building or structure, of a dishwasher, disposal, or refrigerator with an icemaker to existing exposed household plumbing lines;
• installation, in the building or structure, of an awning, fire alarm, or storm window; and
• work done on individual condominium units.

Home improvement does not include:

• construction of a new home;
• work done to comply with a guarantee of completion for a new building project;
• connection, installation, or replacement of an appliance to existing exposed plumbing lines that requires alteration of the plumbing lines;
• sale of materials, if the seller does not arrange to perform or does not perform directly or indirectly any work in connection with the installation or application of the materials;
• work done on apartment buildings that contain four or more single–family units;
• work done on the commonly owned areas of condominiums.

DID YOU KNOW?

• A licensed contractor must maintain general liability insurance in the amount of at least $50,000.
• The Commission may impose on a person who is in violation of the laws governing home improvement contracting a civil penalty not exceeding $5,000 for each violation, whether or not the person is licensed.
• Contractors must display their home improvement license number on all of their home improvement contracts, trucks, and advertisements.
• Home improvement contracts cannot require the payment of more than one third of the total contract price at the time of signing the contract.
• Arbitration clauses in contracts must be clearly disclosed and initialed by both parties.

TIPS FOR HOMEOWNERS

• Ask the Maryland Home Improvement Commission if complaints have been filed against a contractor and whether they have been resolved or are still open.
• Request references from a prospective contractor and check them.
• Get a copy of the contractor’s current liability insurance certificate.
• Always get a written contract.
• Pay no more than 1/3 of the contract price as down payment.
• If a building permit is needed, ask to see it before work starts.

Protect yourself and your property.
Learn more at www.dllr.state.md.us