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 Indiana, home improvement contractors are regulated under various state statutes and regulations. Contracts for home improvement must be in writing and include specific information such as the scope of work, materials to be used, contractor's obligations, payment terms, completion time, insurance requirements, and provisions related to mechanic's liens. Indiana Code Title 24, Article 5, Chapter 11, also known as the Indiana Home Improvement Contracts Act, outlines the requirements for home improvement contracts, including the necessity for a clear and conspicuous statement of the total cost of the contract and the type of any security interest. Additionally, the Act requires that the contract must be signed by both the homeowner and the contractor. Contractors must also be aware of the Indiana Mechanic's Lien Law, which is found in Indiana Code Title 32, Article 28, and provides the process for filing and enforcing mechanic's liens. Failure to comply with these regulations can result in penalties and may affect the enforceability of the contract.