Maryland Home Improvement Contract

Maryland Home Improvement Contract

Contract date: [__/__/____]

Owner: [FULL LEGAL NAME], [MAILING ADDRESS], [PHONE], [EMAIL].

Contractor: [FULL LEGAL BUSINESS NAME], [BUSINESS ADDRESS], [PHONE], [EMAIL]. MHIC contractor license number: [NUMBER].

Salesperson who solicited or sold this work: [NAME AND MHIC LICENSE NUMBER / NONE].

Work site: [STREET ADDRESS, CITY, COUNTY, MARYLAND ZIP].

Owner engages Contractor to perform the home improvement described in this agreement and Exhibit A — Work and Materials. The parties agree to the price, schedule, notices, and signatures below.

First-page notice if payment is secured by the property

Select one: ☐ Payment is unsecured by any contract-created mortgage or lien on residential real estate. ☐ Payment will be secured by an interest in residential real estate described here: [PROPERTY AND SECURITY DOCUMENT].

If the secured option is selected, retain the following notice on the first page in at least 10-point bold type and obtain the homeowner's independent initials:

THIS CONTRACT CREATES A MORTGAGE OR LIEN AGAINST YOUR PROPERTY TO SECURE PAYMENT AND MAY CAUSE A LOSS OF YOUR PROPERTY IF YOU FAIL TO PAY THE AMOUNT AGREED UPON. YOU HAVE THE RIGHT TO CONSULT AN ATTORNEY. YOU HAVE THE RIGHT TO RESCIND THIS CONTRACT WITHIN 3 BUSINESS DAYS AFTER THE DATE YOU SIGN IT BY NOTIFYING THE CONTRACTOR IN WRITING THAT YOU ARE RESCINDING THE CONTRACT.

Homeowner's independent initials for secured-payment notice: [____] Date: [__/__/____].

1. Work, materials, and incorporated documents

Contractor shall provide the labor, supervision, equipment, and materials described in Exhibit A. Exhibit A identifies each work area, task, material, quantity, finish, drawing, allowance, and exclusion. Contractor shall perform the work in a good and workmanlike manner and comply with applicable permits and safety requirements.

Documents incorporated into this agreement: [LIST EACH EXHIBIT, DRAWING, SPECIFICATION, AND CHANGE ORDER BY TITLE AND DATE; WRITE NONE IF NONE]. Only listed documents are incorporated. A change to scope, materials, price, or dates requires a written change order signed by both parties before the changed work starts.

Permits and inspections: [CONTRACTOR / OWNER] will apply for [IDENTIFY PERMITS], pay [IDENTIFY FEES], and arrange [IDENTIFY INSPECTIONS]. Owner shall provide reasonable access during [DAYS AND HOURS] and make selections by the dates in Exhibit A.

2. Approximate dates

Approximate start date: [__/__/____]. Approximate substantial completion date: [__/__/____]. Contractor shall promptly give Owner written notice of a material delay and its cause. Any agreed date change shall be recorded in a signed change order.

3. Price, financing, and payments

Agreed contract price: $[AMOUNT], including labor, materials, taxes, and the Exhibit A work, subject only to signed changes.

Deposit due after both parties sign: $[AMOUNT / ZERO]. The deposit collected before or at signing shall not exceed one-third of the contract price. Contractor shall neither demand nor receive any payment before both parties sign.

Number of monthly payments, if any: [NUMBER / NONE]. Amount of each monthly payment: $[AMOUNT / NONE]. Finance charge: $[AMOUNT AND METHOD / NONE]. Any collateral security for Owner's obligation: [DESCRIBE FULLY / NONE]. If a financing agreement or security document is used, identify it in Section 1 and complete the secured-payment notice above where applicable.

The scheduled amounts total $[TOTAL], equal to the agreed price. Payment method: [METHOD]. Contractor shall give Owner an itemized invoice for each payment. Owner may identify disputed incomplete or defective work in writing and pay the undisputed portion while the parties resolve the dispute.

4. Maryland Home Improvement Commission notices

Each contractor must be licensed by the Maryland Home Improvement Commission. Anyone may ask the Commission about a contractor. Commission telephone: 410-230-6231 or 1-888-218-5925. Commission website: https://labor.maryland.gov/license/mhic/.

Formal mediation of disputes between homeowners and contractors is available through the Maryland Home Improvement Commission. The Commission administers the Home Improvement Guaranty Fund, which may compensate homeowners for certain actual losses caused by acts or omissions of licensed contractors. A homeowner may request that a contractor purchase a performance bond for additional protection against losses not covered by the Guaranty Fund.

Owner's requested performance bond, if any: [BOND DETAILS / NONE]. A request alone does not state that a bond has been issued; attach the issued bond if purchased.

5. Rooftop solar work, if included

☐ No rooftop solar energy generating system is included. ☐ Rooftop solar installation is included in Exhibit A. If included, Contractor shall install an industry-standard barrier to prevent wildlife intrusion and damage to the system or roof, unless Owner signs the following informed waiver after receiving the barrier cost and risk information.

Barrier cost: $[AMOUNT]. Risks of omitting the barrier explained to Owner: [DETAILS]. ☐ Owner elects the barrier. ☐ Owner waives the barrier after receiving the cost and risk information.

Owner's separate signature for waiver, only if selected: ____________________ Date: [__/__/____].

6. Completion, changes, and disputes

Contractor shall notify Owner when the work is substantially complete. The parties shall record agreed incomplete or defective items and a reasonable correction schedule in a written punch list. Contractor shall correct work that fails the agreed specifications or applicable law. Any additional workmanship warranty: [TERM, SCOPE, REMEDY / NONE BEYOND APPLICABLE LAW].

Either party may give written notice of a material breach stating the facts and requested cure. If a curable breach remains uncured for [NUMBER] days after receipt, the nonbreaching party may end the unperformed work by written notice, subject to applicable law. The parties shall account for completed work, payments, and lawful offsets. Maryland law governs this agreement; a court with jurisdiction in [COUNTY] County, Maryland may hear a dispute unless mandatory law requires another forum.

Notice addresses: Owner at [ADDRESS AND EMAIL]; Contractor at [ADDRESS AND EMAIL]. A notice under the secured-payment rescission provision must be sent in writing to Contractor at [ADDRESS AND DELIVERY METHOD]. Use any separate cancellation notice required for a covered door-to-door sale.

7. Signatures and delivery

The parties have read this complete agreement and its listed attachments. Contractor shall give Owner a copy signed by Contractor before work begins.

Owner signature: ______________________________ Date: [__/__/____]

Owner printed name and capacity: [NAME; CAPACITY]

Contractor signature: ______________________________ Date: [__/__/____]

Contractor signer name and title: [NAME; TITLE]

Signed copy delivered to Owner by: [PERSON; METHOD] On: [__/__/____]

Exhibit A — Work and Materials

Owner selections and due dates: [ITEM; DATE / NONE]. Site protection and cleanup: [DETAILS]. Project-specific exclusions: [DETAILS / NONE].

Owner initials for Exhibit A: [____] Contractor initials: [____]

Sources and References

• Maryland Code, Business Regulation §§ 8-101, 8-501, 8-617
• COMAR 09.08.01.26, required notice
• Maryland Home Improvement Commission, contract requirements and contact