Eugene Uzoukwu owned an older home in Baltimore City, Maryland and needed some work done -- a “total renovation”, in Eugene’s words. Kevin Servance agreed to start the job. Kevin wrote up the contract. He would furnish all materials, labor, and permits necessary for a new rubber roof and also remove an existing fire escape. The contract price was $14,000. At the top of the contract, Kevin listed a Maryland Home Improvement Commission license number.
That was a good start. Maryland contractors have to toe the line when writing home improvement contracts. Maryland's Business Regulation Code sets a high bar:
- Section 8-501 lists several pages of notices and disclosures that have to be in home improvement contracts.
- Section 8-617 limits advance payments to one-third of the home improvement contract price.
- Section 8-605 prohibits deviation from the terms of a home improvement contract.
- Sections 8-607 and 8-608 prohibit false promises, misrepresentations and fraud.
- Section 8-620 authorizes the Maryland Home Improvement Commission to collect a civil penalty of $5,000 for violation of Maryland Home Improvement Law.
- Section 8-623 makes violation a misdemeanor punishable by a fine of $1,000 and 6 months in jail.
- Code of Maryland Regulations section 09.08.01.26 requires three more disclosures in home improvement contracts.
Next Came the Surprises
Work proceeded normally until it came
time to remove a fire escape from the rear wall of the building. Kevin or his crew
tied a line between the fire escape and his truck – without bothering to detach
the fire escape from the rear wall. When the truck pulled away, part of the rear
wall came down with the fire escape. That was Surprise One.
Eugene estimated the damage to the rear wall at $17,051.61 and filed a complaint against Kevin with the Maryland Home Improvement Commission. Then came Surprise Two. Kevin didn’t have a Maryland contractor’s license. He had listed someone else's license number on the contract.
Kevin pleaded guilty in Baltimore City Circuit Court to acting as a home improvement contractor without a license and got a 6-month sentence. But the circuit court denied Eugene’s claim for restitution on the ground that removing the fire escape was demolition, not home improvement. Eugene appealed. The appellate court had to interpret Maryland’s Business Regulation Code Section 8-601 which defines home improvement.
No Surprise Here
Nearly all states set standards for residential
construction contracts. Many states, including Maryland, set higher standards for
home improvement contracts. In most states, the definition of home improvement
is broad enough to include nearly any type of construction. Only routine maintenance,
warranty repairs and new home building are excluded.
In the case of Uzoukwu v. State of Maryland (decided 9/2/2021), the appellate court gave Eugene a second chance to prove his claim. Reversing the circuit court decision, Judge Nazarian suggested the term home improvement “covers all alterations to a home undergoing renovation, including removing unsightly or dangerous parts of a residence”.
If you’re a construction contractor working on an existing residence with four units or less, avoid surprises. You need a contract that meets state standards for home improvement work. Drafting a perfectly valid, fully enforceable contract is easy. Get Construction Contract Writer. The trial version is free.
