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The law continues to provide that only MHIC licensed contractors may enter into contracts with homeowners to perform home improvement work. The commission encourages all those who wish to become contractors to apply for the Maryland Home Improvement Commission contractor license. Maryland home improvement contractors and salespersons should be aware that a MHIC license does not authorize you to act in the capacity of a public adjuster when dealing with a homeowner’s insurance company.
The contract also must contain a description of the home improvement to be performed and the materials to be used. Remember, a contract is a legally binding document so it is important to understand what you are signing. The homeowner must receive a signed copy of the contract prior to the work starting. If you do not meet MHIC financial solvency requirements and are seeking licensure as a home improvement contractor in Maryland, you’re required to carry this bond. Home improvement contractors in the state of Maryland must hold a bond amount of $30,000. If a licensee does not receive a renewal notice within 30 days of the license expiration, please contact the Commission.
Proposed Regulations Currently Open for Public Comment
Home improvement also includes work done on individual condominium units. Home improvement does not include work done on commonly owned areas of condominiums or buildings that contain four or more single family units. The Commission investigates complaints by homeowners, awards monetary damages against licensed contractors, and prosecutes violators of the home improvement law and regulations. Maryland eliminated the subcontractor license category as of July 1, 2016. All application, examination, and renewal requirements have been eliminated.
Use Labor’s Central Scheduling System to meet with a representative from one of our boards or commissions. Please select the type of appointment you need from our list of available in-person services using the drop-down menu on the scheduler. You will receive an e-mail confirming the date and time of your appointment.
Maryland Home Improvement Contracts
This license bond protects the public and ensures financial compensation should a contractor fail to abide by licensing laws. The contract may also be covered by the Maryland Door-to-Door Sales Act. The Door-to-Door Sales Act requires that the contract be written in the same language as that principally used in the oral sales presentation. Before you sign a contract, it is important to know if the contract contains an arbitration clause. Also, the parties must initial and date the contract next to the arbitration clause.
Home improvement subcontractors may work without a license when performing home improvements for an MHIC licensed contractor in the state of Maryland. Before some Maryland contractors can become licensed, they must purchase a home improvement contractor surety bond. The bond helps ensure that the contractor who doesn’t meet personal net worth requirements will abide by Maryland Code, Business Regulation, Title 8, and meet all contractual agreements made on a project. No credit check is required to purchase a Maryland home improvement contractor bond when you purchase it through NNA Surety Bonds.
Quick & Easy Application
A homeowner has the right to purchase a performance bond for additional protection against losses not covered by the Guaranty Fund. A home improvement contract must contain the name, address, and MHIC license number of the contractor. If a salesperson solicited or sold the home improvement, then the contract must also contain the name and license number of each salesperson. There are no proposed regulations by the Maryland Home Improvement Commission at this time.
You may wish to consult an attorney prior to signing any legal document. A home improvement contract must contain the approximate dates when the performance of the home improvement will begin and when it will be substantially completed.
The Maryland home improvement contractor bond is a surety bond required by the Maryland Home Improvement Commission . To obtain state licensure, contractors operating in Maryland must purchase this bond if they do not meet MHIC financial solvency guidelines. The Maryland Home Improvement Commission has specific requirements for the form and content of every home improvement contract. Also, the contract must describe each document that it incorporates, and it must be signed by each party to the agreement.
You can purchase the bond, also known as a Maryland contractor bond, by clicking here. If the principal fails to meet a project’s contractual agreements, a claim can be filed against the bond. More information on how to get state licensure as a Maryland home improvement contractor is provided by the Maryland Department of Labor.
As soon as we receive your payment and contact information, your policy will be delivered, and all official bond documents will be sent to you electronically. Each contractor pays $100 into the Fund when applying for a new license. Upon renewal, the assessment fee per contractor is $150 every two years.
Fees are set by Law and Regulation and are subject to change with public notice given. Due to the pandemic, Board meetings are being held virtually until further notice. Meetings will continue as scheduled even if State Government is closed or has liberal leave due to inclement weather. Please note that all Maryland Home Improvement Commission workshops scheduled to be held at 1100 North Eutaw Street, have been canceled until further notice.
The Commission has a Guaranty Fund supported by licensed contractors, who pay a Guaranty Fund assessment when they obtain their Home Improvement license and each time they renew their license. This Fund compensates homeowners for actual monetary losses due to poor workmanship or failure to perform a home improvement contract. The maximum amount that a homeowner may recover through the Fund is the amount paid to the contractor, up to $30,000. If the total amount of all claims against a contractor equals more than $100,000, then each homeowner’s award is pro-rated based upon the total amount awarded to each claimant. The Maryland Home Improvement Commission licenses and regulates home improvement contractors and salespersons. Home improvement work includes alteration, remodeling, repair or replacement of a building or part of a building used as a residence.
Other bonding companies may require a credit check, which could affect your premium cost. Notice of license expiration and renewal instructions are sent approximately 60 days prior to the expiration of each license. If a person requests that a copy of a record be certified as a true copy, an additional fee of $1 shall be charged. The Commission shall collect a fee of $ 1 for certifying under seal the licensing status of a person. The same low rate applies to all applicants when you purchase your bond through NNA Surety Bonds because no credit check is required.
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