Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement 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 Illinois, home improvement contractors are regulated under the Home Repair and Remodeling Act (815 ILCS 513/). This Act requires contractors to provide customers with a written contract for any repair or remodeling work over $1,000. The contract must include a detailed description of the work, materials to be used, the start and completion dates, and the total cost of the project. Contractors are also required to provide a brochure titled 'Home Repair: Know Your Consumer Rights' to customers before any work begins. The Act mandates that contractors carry minimum amounts of insurance and provides guidelines for the proper filing and removal of mechanic's liens. Failure to comply with these regulations can result in penalties, including the inability to enforce the contract and potential fines. It is important for both contractors and homeowners to understand their rights and obligations under this Act to ensure compliance and protect their interests.