Contracts: Get It In Writing

A professional contractor will want to supply you with a written contract for your review to avoid any misunderstandings during construction. Look for the following items in your remodeling contract (many of the items are required by the Maryland Home Improvement Commission (MHIC).

Name, address, phone number, MHIC license number of the company.

Name, address, MHIC license number of the salesperson negotiating the contract.

All home improvement contractors and subcontractors must be licensed by the MHIC. You can make inquiries about a contractor by calling 410-333-6309, or writing to MHIC, 501 St. Paul Place, 8th Floor, Baltimore, MD 21202.

Right of Recision/Cancellation notice and an additional notice required by the MHIC.

Notice that the HVAC and refrigeration portion of the contract is not covered by MHIC law nor is it subject to recourse under the Guarantee Fund.

Commencement and substantial completion dates.

Plans and specifications detailing the scope of work and permit acquisition.

Cost of the work and a payment schedule (a deposit of 30 percent is normally requested).

A clause dealing with the method used to calculate any additional work requested.

A clause to deal with unforeseen or hidden conditions.

A clause stating that all work will be completed in a manner according to standard industry practice.

Insurance coverage by company. Homeowner to carry homeowner's insurance.

A clause dealing with the warranty offered.

A clause dealing with who is responsible in the event environmental concerns are found (asbestos, lead, etc.)

Default and negligence clauses.

If an arbitration clause exists in the contract, a notice that "any claim against the MHIC Guarantee Fund shall be stayed unit completion of the mandatory arbitration proceeding." Additionally, fees associated with the arbitration procedure shall be noted in the contract.