A general contractor agreement is, as the name implies, generally an agreement between the owner of real estate and a building contractor for services to manage the construction (and sometimes the design) of a residential or commercial building according to certain specifications or plans provided by the owner.

A general contractor agreement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In Maryland, a general contractor agreement is a legally binding contract that outlines the relationship and obligations between a property owner and a general contractor hired for construction projects. This agreement typically includes detailed provisions regarding the scope of work, materials to be used, the contractor's responsibilities in hiring and managing subcontractors, payment schedules, timelines for project completion, insurance requirements, and the handling of mechanic's and materialmen's liens. Maryland law requires that contracts for home improvement be in writing and include specific information as outlined in the Maryland Home Improvement Law (Title 8, Business Regulation Article of the Annotated Code of Maryland). The law also mandates that contractors be licensed by the Maryland Home Improvement Commission (MHIC) to perform home improvement work. The agreement must comply with state statutes, including those governing construction liens, which are covered under Title 9 of the Real Property Article of the Maryland Code. These liens ensure that contractors and suppliers receive payment for their work and materials. It is advisable for parties entering into a general contractor agreement in Maryland to consult with an attorney to ensure that the contract adheres to all applicable state laws and regulations.