Need a Home Services / Remodeling / Interior Renovation Contract in Maryland? AroundWire Can Help

In Maryland, contracts for home services, remodeling, and interior renovation are governed by specific statutes and industry norms designed to protect both consumers and contractors. The Maryland Home Improvement Law requires that contractors performing home improvement work be licensed by the Maryland Home Improvement Commission (MHIC), and the contractor’s MHIC license number must appear on all contracts and advertising materials. Written contracts are mandatory for any project costing $500 or more and must include the scope of work, estimated start and completion dates, total contract price, payment schedule, and a notice of the homeowner's right to cancel within three business days. Contracts must also address warranty terms and dispute resolution procedures. Contractors are typically required to carry general liability insurance and, if they employ workers, workers’ compensation insurance. Maryland law prohibits certain unfair contract terms, such as waiving consumer rights or including broad arbitration clauses not compliant with state law. Risk factors include potential penalties for unlicensed work, failure to pull required permits, or inadequate insurance coverage. Payment terms often include an initial deposit, which by law cannot exceed one-third of the contract price, with subsequent payments tied to project milestones. Dispute resolution generally favors mediation or small claims court for smaller disputes, and contracts should specify the process for handling complaints or defects. Local jurisdictions may impose additional permitting or inspection requirements, so contracts must be tailored to comply with both state and municipal regulations.