Maryland Home Improvement Contractor Licensing and Regulations

Maryland Home Improvement Contractor
Licensing and Regulations
Maryland Home Improvement Commission (MHIC) -✓✓Regulates home
improvement contractors in Maryland

MHIC License Requirement -✓✓Must be licensed before advertising or working

License Validity Period -✓✓2 years

License Renewal -✓✓Fee and application before expiration

Unlicensed Contracting -✓✓Punishable by fines and suspension

Advertising Without License -✓✓Illegal

Written Contract Threshold -✓✓Jobs over $200

Required Contract Format -✓✓Must be in writing and signed

Contract Must Include -✓✓License number and contractor info

Contract Scope -✓✓Description of work

Contract Price -✓✓Total project cost

Start and Finish Dates -✓✓Must be stated

Payment Schedule -✓✓Included in contract

Cancellation Notice -✓✓Must be included

Right of Rescission -✓✓3 business days to cancel

Door-to-Door Sales Act -✓✓Protects consumers

, Deposit Allowed -✓✓After contract signed

Deposit Limit -✓✓No more than 1/3 (typical rule of thumb)

Progress Payments -✓✓Allowed if stated

Final Payment -✓✓Due after completion

Time and Materials Contract -✓✓Must be written

Oral Contracts -✓✓Not allowed over $200

Change Order Definition -✓✓Written contract modification

Change Order Requirement -✓✓Must be signed

Unauthorized Changes -✓✓Prohibited

Warranty Disclosure -✓✓Must be in contract

Material Specifications -✓✓Must be listed

Subcontractor Disclosure -✓✓Recommended in contract

Lien Rights -✓✓Must follow state law

Mechanic's Lien -✓✓Possible for unpaid work

False Advertising -✓✓Prohibited

Misrepresentation -✓✓Illegal

Complaint Filing -✓✓Through MHIC

Disciplinary Actions -✓✓Fines, suspension, revocation

Guaranty Fund -✓✓Pays homeowners for losses