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

In Minnesota, contracts for home services, remodeling, and interior renovation are governed by a combination of state statutes and local ordinances designed to protect both consumers and contractors. Licensed residential building contractors must be used for most projects exceeding $15,000, and licensing is overseen by the Minnesota Department of Labor and Industry. Contracts must be in writing for projects over $1,000 and should clearly outline the scope of work, materials, start and completion dates, payment schedules, and change order procedures. The state’s “Contractor’s Right to Cancel” law requires a 3-day cancellation period for homeowners, which must be disclosed in the contract. Contractors must carry general liability insurance and, if employing workers, workers’ compensation coverage. Permits are mandatory for most structural, electrical, or plumbing work, and failure to obtain them can void contracts or result in penalties. Payment terms often include a down payment not exceeding one-third of the contract price, with progress payments tied to completion milestones. Minnesota’s Prompt Payment Act requires timely payment to contractors and subcontractors. Dispute resolution typically favors mediation or arbitration before litigation, and contracts may reference the Minnesota Home Warranty Law, which provides statutory warranties on workmanship and materials. Risk factors include potential mechanic’s liens for nonpayment, so lien waivers are commonly incorporated into payment procedures.