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 Maryland, home improvement contractors are regulated by the Maryland Home Improvement Commission (MHIC), which operates under the Department of Labor. Contractors must be licensed by the MHIC to perform home improvement work. The law requires a written contract for every home improvement job that includes the elements described, such as the scope of work, materials, contractor obligations, payment terms, completion time, insurance requirements, and lien procedures. Maryland law also provides specific regulations regarding the filing and removal of mechanic's liens to protect both homeowners and contractors. Contractors must adhere to these regulations to ensure they can legally enforce their right to be paid for services and materials provided. Homeowners are also protected under Maryland law, which requires contractors to provide certain disclosures and follow guidelines that prevent unfair or deceptive trade practices.