Hiring a Contractor
Overview Maryland Law requires every person acting as a contractor in the state to have a Maryland home improvement contractors (MHIC) license. It is a criminal offense to do home improvements without a license and there is no protection from MHIC guaranty fund for the homeowner who uses an unlicensed contractor.
An owner may recover compensation from the guaranty fund for an actual loss that results from an act or omission by a licensed contractor as found by the Home Improvement Commission or a court of competent jurisdiction.
Did You Know A licensed contractor must maintain general liability insurance in the amount of at least $50,000.
The commission may impose on a person who is in violation of the laws governing home improvement contracting a civil penalty not exceeding $5,000 for each violation whether or not the person is licensed. Contractors must display their home improvement license numbers on all of their home improvement contracts, trucks and advertisements. Home improvement contracts cannot require the payment of more than one third of the total contract price at the time of signing the contract. Arbitration clauses in contracts must be clearly disclosed and initialed by both parties. Find out who is licensed Call 410-230-6309 or 1-888-218-5925, or visit Department of Labor, Licensing, and Regulation
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