Home Improvement Contracts

Certain Extra Requirements for Home Improvement Contracts (Remodel Contracts):

1. Must be in writing (including change orders)
2. Must have commencement date & completion date
3. Must give definition of commencement & state penalty for failure to commence within 20 days
4. Must give description of work
5. Can only accept down payment of 10% of contract price or $1000, whichever is less
6. Must give notice to owner form
7. Must give 2 copies of Notice of Right of Rescission form
8. Must be signed by both parties
9. Must state your license number
10. Must list schedule of payments
11. Must state you'll furnish lien releases upon payment
12. Must state Owner's right to require payment and performance bond from contractor (at owner's expense)

The penalty for failure to follow these provisions is a possible misdemeanor, a fine of $100 to $5000 and/or a year in jail.

CONSULT AN ATTORNEY IF YOU HAVE ANY QUESTIONS ABOUT ANY OF THE ABOVE.