Need a Home Services Contract in Maryland? AroundWire Can Help

In Maryland, contracts for home services—such as repairs, renovations, and remodeling—are governed by a combination of state statutes and local ordinances. All home improvement contractors must be licensed by the Maryland Home Improvement Commission (MHIC), and contracts for work exceeding $500 are required to be in writing. Written agreements must include the contractor’s MHIC license number, a detailed description of the work, the total price, payment schedule, estimated start and completion dates, and notice of the homeowner’s right to cancel within three business days. Contractors are typically required to carry general liability insurance, and bonding may be needed for certain projects. Payment terms often stipulate that no more than one-third of the contract price may be collected as a deposit before work begins, with the balance due upon completion or according to progress milestones. Risk factors include potential liability for property damage or injury, making adequate insurance coverage essential. Dispute resolution in Maryland tends to favor mediation or MHIC-administered arbitration before litigation. Compliance with local building codes and permitting is mandatory, and failure to adhere can result in contract voidance or penalties. Contractors should also be aware of consumer protection laws that prohibit unfair or deceptive practices, influencing both contract language and business conduct.