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

In Minnesota, contracts for home services and remodeling are governed by both state statutes and local ordinances, with particular attention to consumer protection. Contractors performing residential remodeling must be licensed by the Minnesota Department of Labor and Industry unless exempt (e.g., certain specialty trades). Written contracts are mandatory for projects exceeding $1,000 in value, and must include key disclosures such as the contractor’s license number, a detailed scope of work, start and completion dates, total price, payment schedule, and a three-day right to cancel notice for homeowners (per Minnesota Statute § 325G.07). Insurance requirements typically include general liability and workers’ compensation coverage; proof must be provided upon request. Payment terms often involve an initial deposit (limited by law to no more than 1/3 of the total contract price before work begins), with subsequent payments tied to project milestones. Minnesota’s “Prompt Payment Act” also requires timely payment for completed work. Risk factors include strict liability for code compliance and potential penalties for unlicensed activity. Dispute resolution usually favors negotiation or mediation before litigation, and contracts may specify local jurisdiction for any legal proceedings. Contractors must also comply with local building permit requirements and ensure all subcontractors are properly licensed and insured. Failure to meet contract or statutory obligations can result in civil penalties, contract voidance, or loss of licensure.