Maryland Law: Stone Fabricators' Rights And Responsibilities

Home improvement in Maryland is a highly regulated area, with the Maryland Home Improvement Commission (MHIC) licensing and regulating home improvement contractors and salespersons. The MHIC also investigates complaints by homeowners, awards monetary damages, and prosecutes violators of the home improvement law and regulations. All home improvement contractors in Maryland are required to be licensed by the MHIC, and homeowners are advised to only do business with licensed contractors. This is because doing business with a licensed contractor provides protection from the MHIC's Guaranty Fund for losses of up to $20,000 per claimant for poor workmanship and other violations of the Home Improvement Law. So, while the MHIC law and regulations apply to stone fabricators if they are acting as contractors, homeowners will not be protected by the Guaranty Fund if they do business with an unlicensed stone fabricator acting as a contractor.

Licensing requirements for stone fabricators

Stone fabricators in Maryland are subject to licensing requirements, which vary depending on the nature of their work and business structure. Here is a detailed overview of the licensing requirements for stone fabricators in the state:

Firstly, almost all businesses in Maryland need a business license issued by the Clerks of the Circuit Court. This applies to stone fabricator businesses operating within the state. The specific requirements and fees may vary by county, so it is essential to contact the Clerk of the Circuit Court in your county or Baltimore City to understand the precise steps for obtaining a business license.

Additionally, construction licenses are required for commercial work and new home construction. If a stone fabricator's work involves construction activities, they must obtain a construction license from the Clerk of the Circuit Court. This license covers work on or in any structure using materials such as paint, stone, brick, mortar, wood, cement, or various types of metals.

It is important to note that contractors licensed by the Maryland Home Improvement Commission (MHIC) are not required to hold a separate construction license to enter into home improvement contracts. The MHIC licenses and regulates those who perform home improvement services, including alteration, remodeling, repair, or replacement of residential buildings or individual condominium units. To obtain an MHIC license, applicants must pass an examination, demonstrate financial solvency, provide a credit report, and show proof of current $50,000 liability insurance, among other requirements.

Furthermore, stone fabricators who work on commonly owned areas of condominiums or buildings with four or more single-family units may have additional licensing requirements. In such cases, they would need to obtain a construction license from the appropriate Clerk of the Circuit Court.

Lastly, stone fabricators who are involved in the sale of home improvements must comply with licensing requirements specific to salespersons. According to MHIC regulations, a person may only be licensed to represent up to two licensed contractors in the selling of home improvements.

In summary, stone fabricators in Maryland must comply with licensing requirements based on the nature of their work and business structure. These requirements include business licenses, construction licenses, MHIC licenses, and salesperson licenses, each with their own specific criteria and processes.

Contract terms and conditions

In Maryland, home improvement contractors are required to be licensed by the Maryland Home Improvement Commission (MHIC). The MHIC has specific requirements for the form and content of every home improvement contract. Here are some key terms and conditions that should be included in a contract with a stone fabricator for a home improvement project:

• Contractor's Information: The contract must include the contractor's name, address, telephone number, and MHIC license number. If a salesperson is involved, their name and license number must also be included.
• Homeowner's Information: The contract should also contain the name and address of the homeowner.
• Description of Work: A detailed description of the home improvement work to be performed, including the specific materials to be used. This section should be clear and comprehensive to avoid any misunderstandings or disputes.
• Dates and Timeline: The contract should outline the approximate dates for the start and substantial completion of the project.
• Payment Terms: The contract must clearly state the agreed-upon price for the entire job. Contractors cannot accept more than 1/3 of the contract price as a deposit, and no payments can be accepted until the contract is signed. The payment schedule and terms for additional payments can be negotiated between the homeowner and the contractor.
• Permits and Compliance: The contractor is responsible for obtaining any necessary permits and ensuring compliance with local building laws and regulations.
• Changes and Alterations: Any changes or alterations to the original scope of work should be made in writing, with both parties agreeing on the changes and the associated costs.
• Dispute Resolution: The contract should outline the steps to be taken in the event of a dispute, including mediation, arbitration, or legal action. The MHIC offers a mediation program to help resolve disputes amicably.
• Warranties: The contract should include the terms and conditions of any warranties provided by the contractor for materials and workmanship.
• Cancellation and Termination: The contract should outline the rights and procedures for cancellation or termination, including any applicable refunds or penalties.
• Insurance and Liability: The contractor should provide proof of liability insurance to cover any accidents or damage that may occur during the project.
• Final Inspection and Completion: The contract should specify the process for final inspection and acceptance of the completed work, including any "punch list" items that need to be addressed before final payment is made.

Remember, it is crucial to review and understand the contract thoroughly before signing. Home improvement projects can be complex, and a well-crafted contract will help protect both the homeowner and the contractor, ensuring a smooth and successful project.

Compliance with MHIC regulations

Licensing:

Contractors performing home improvement work in Maryland are typically required to obtain a license from the MHIC if the project cost exceeds a certain dollar amount. This licensing requirement ensures that contractors meet specific standards and qualifications, providing consumers with confidence and protection.

Consumer Protection:

The MHIC actively protects consumers by regulating the business practices of home improvement contractors. This includes setting mandatory standards for contracts, requiring certain disclosures, and addressing consumer complaints against licensed contractors. The MHIC also provides educational resources to promote awareness of rights and responsibilities among both consumers and contractors.

Dispute Resolution:

In the event of a dispute between a homeowner and a licensed contractor, the MHIC offers a mechanism for resolution. This may involve mediation or formal hearings to address complaints and issues related to the home improvement project. The MHIC investigates complaints, takes disciplinary action against contractors who violate regulations, and enforces compliance with licensing requirements.

Contract Requirements:

The MHIC has specific requirements for home improvement contracts. These include the contractor's name, address, telephone number, MHIC license number, and the salesperson's name and license number if applicable. The contract must also include the approximate dates for the performance of the work, a detailed description of the improvements, and the materials to be used. The contract must be in writing, legible, and signed by both parties before any work commences.

Payment Terms:

MHIC regulations stipulate that contractors cannot accept more than 1/3 of the contract price as a deposit, and no payments can be accepted until the contract is signed. Beyond the initial deposit, contractors can negotiate payment terms with the homeowner.

Insurance:

Contractors are required to provide proof of liability insurance to protect against accidents, injuries, and property damage that may occur during the home improvement project.

Dispute resolution processes

Contact the Contractor

The first step in resolving any dispute is to clearly communicate the issue to the contractor in writing. It is important to provide them with a reasonable opportunity to correct the problem. Before initiating contact, it is advisable to review the contract and gather any relevant paper records. Preparing notes in advance ensures that all important points are discussed, and it is beneficial to remain calm and professional during these discussions.

Mediation

If the contractor fails to respond or adequately address the issues, mediation is the next recommended step. Mediation involves a neutral third party, who helps facilitate a discussion between the contractor and the homeowner. This neutral party ensures that both sides are heard and understood, and they assist in exploring alternatives to resolve the dispute. Mediation can be conducted by any unbiased individual or a trained professional. Community mediation centers also offer these services at a low cost. The Maryland Home Improvement Commission, in partnership with Community Mediation Maryland and the University of Maryland School of Law's Mediation Clinic, provides a free mediation program. This program offers a faster, easier, and more cost-effective path to conflict resolution compared to administrative hearings. Importantly, mediation is voluntary, and both parties must agree to settle.

File a Complaint with the MHIC

If mediation is unsuccessful or not pursued, the next step is to file a formal complaint with the Maryland Home Improvement Commission (MHIC). Complaint forms can be obtained from the MHIC website or by contacting them directly. The MHIC will conduct an investigation, and if they find that the contractor violated MHIC law, they may file criminal or regulatory charges. However, it is important to note that there is no monetary award for homeowners during the complaint process.

File a Claim with the MHIC Guaranty Fund

To seek compensation for monetary losses, a separate claim must be filed with the MHIC Guaranty Fund. This claim form can be obtained from the investigator assigned to the case. There is a time limit for filing this claim, which must be submitted within three years of discovering any loss or damage caused by the contractor. It is crucial to remember that only contractors licensed by the MHIC at the time of performing the work are eligible for claims against the Guaranty Fund. For claims exceeding $7,500, a hearing is required, where the claimant must provide evidence and testimony. The maximum compensation offered by the MHIC Guaranty Fund is $30,000.

Finish the Work and Sue

An alternative to filing a complaint with the MHIC is to hire another contractor to finish the work and then sue the original contractor for the cost of completion. This process involves writing a detailed letter to the original contractor, providing them with a reasonable opportunity to correct their work. Subsequently, written estimates from other contractors detailing the cost of completing the work are obtained. For claims of $5,000 or less, homeowners may be able to sue in the Small Claims Court without a lawyer. Evidence for this process includes the letter to the contractor, their response, and the estimates for completing the work.

Consumer protections under Maryland law

Maryland's Home Improvement Law is designed to protect consumers from unfair and deceptive business practices. The law requires that all home improvement contractors be licensed by the Maryland Home Improvement Commission (MHIC). This includes contractors who perform alteration, remodeling, repair, or replacement work on residential buildings or individual condominium units.

The MHIC provides several protections for consumers:

• It investigates complaints by homeowners against licensed contractors.
• It awards monetary damages against licensed contractors who are found to have violated the home improvement law and regulations.
• It prosecutes violators of the home improvement law and regulations.
• It requires that all home improvement contracts include the MHIC's telephone number, webpage, and a description of the protections available through the MHIC.
• It allows homeowners to file a claim with the MHIC Guaranty Fund to receive compensation for losses caused by licensed contractors.

In addition to the protections offered by the MHIC, Maryland's Consumer Protection Act (CPA) offers further safeguards for consumers. The CPA is a state law enforced through the Consumer Protection Division of the Office of the Attorney General. It covers a wide range of goods and services, including the sale, lease, rental, loan, or bailment of consumer goods, consumer realty, or consumer services.

If a consumer has a grievance with a business, they can call or file a complaint with the Attorney General's Consumer Protection Division. The division will then conduct an investigation and work to settle the dispute through mediation, negotiation, arbitration, or legal action.

The CPA also establishes a private cause of action, allowing individuals who have suffered actual harm to seek damages from those who violate the CPA. This includes monetary losses or injuries. The CPA includes fee-shifting provisions, which means that if an individual sues for a violation and wins, they can recover their attorney's fees in addition to monetary damages.

Frequently asked questions