Maryland Home Improvement Contractor (MHIC)

Key Concepts

Scope and definitions (Subtitle 1). "Home improvement" includes construction on land adjacent to the building of a driveway, fall-out shelter, fence, garage, landscaping, deck, pier, porch, or swimming pool (§8-101(g)(2)(i)); a shore erosion control project (§8-101(g)(2)(ii)); installation of an awning, fire alarm, or storm window (§8-101(g)(2)(iv)); and work on individual condominium units (§8-101(g)(2)(v)). It excludes new home construction (§8-101(g)(3)(i)), the sale of materials where the seller does not arrange or perform installation (§8-101(g)(3)(iv)), and work on commonly owned areas of condominiums (§8-101(g)(3)(vi)). The Law does not apply to transactions involving the United States, a state, or an instrumentality or political subdivision of a state (§8-102). The Commission asks whether the work (1) adds value to the residence and (2) would remain with the property if sold. Handymen are not exempt; subcontractors who contract with a contractor are exempt (§8-301(c)).

The Commission (Subtitle 2). 9 members appointed by the Governor with the advice of the Secretary (§8-202(a)(1)); at least one member has banking or finance experience (§8-202(a)(2)(ii)); each member must have been a citizen and resident of the State at least 5 years (§8-202(b)); the Governor shall remove a member who did not attend at least two-thirds of meetings in the prior year (§8-202(g)(2)). Office is in Baltimore City (§8-204(e)). Regulations explain the statute but cannot expand the Commission's authority (§8-207). In injunction suits against unlicensed persons, the Commission need not post bond or show no adequate remedy at law (§8-208(b)(2)); an administrative hearing is not a prerequisite to prosecution under §8-601 (§8-208(c)). A hearing board has at least 3 Commission members, including at least one with home improvement experience and at least one consumer member (§8-313(b)(1)–(2)). Free…

Maryland Home Improvement Contractor (MHIC) Reference: NASCLA Contractors Guide, Ch. 1, "Maryland Door-to-Door Sales Act" (p. 1-9; full text at p. 1-56)

Key Concepts

Definition and scope - A "door-to-door sale" is a sale, lease, or rental of consumer goods or consumer services with a purchase price of $25 or more, in which the seller personally solicits the sale and the buyer's agreement is made at a place other than the seller's place of business (§14-301(d)). - The definition expressly includes "a solicitation in response to or following an invitation by the buyer" (§14-301(d)(1)). A homeowner-initiated visit is still covered. - "Purchase price" means the total price paid or to be paid for the consumer goods or services, including all interest and service charges (§14-301(h)). - "Business day" means any calendar day except Sunday and specified federal holidays — so Saturday counts as a business day (§14-301(b)).

Exemptions - The Act does not apply to transactions pertaining to the sale or rental of real property, the sale of insurance, or the sale of securities or commodities by a registered broker-dealer (§14-301.1(6)).

Cancellation rights (home improvement contracts) - Buyer under 65: may cancel prior to midnight of the 5th business day after the transaction date (§14-302.1(1)). - Buyer at least 65: cancellation period extends to 7 business days (§14-302.1(1)–(2)). - The Notice of Cancellation for a home improvement contract must be on a separate form that is not part of the contract (§14-302.1(2)(i)) — unlike the general rule in §14-302(2)(i), which requires the notice to be attached and easily detachable.

Key Concepts

Fair Labor Standards Act (Chapter 3, Employee Management — FLSA section) - Federal minimum wage is $7.25 per hour, effective July 24, 2009 (Page 11-4). - Youth minimum wage: minors under 20 years of age may be paid not less than $4.25 per hour during the first 90 consecutive calendar days of employment. Employers may not displace any employee to hire someone at the youth wage.

Hiring Minors for Construction Work (Chapter 3 — Hiring Minors, Working Hours / Prohibited Tasks / Penalties sections) - Where state and federal law differ, employers must follow the stricter of the two. In Maryland, minors must obtain a work permit, which is not issued until the minor has been offered the job. - Hours — ages 14 or 15, school in session: not before 7 a.m., not later than 7 p.m. (9 p.m. between June 1 and Labor Day), no more than 3 hours a day or 18 hours a week; work prohibited during school hours. School not in session: same start/stop times, but up to 8 hours a day / 40 hours a week. - Ages 16 or 17: no more than 12 hours combined school and work per day, and 8 hours of non-school, non-work time in each 24-hour period. All minors get a 30-minute break after 5 consecutive hours of work. - Prohibited hazardous tasks applicable to construction (except apprentices as defined by law) include: power-driven woodworking machines, circular saws, band saws, guillotine shears; elevators or other power-driven hoisting apparatus; power-driven metal-forming punching and shearing machines; driving any motor vehicle and being an outside helper; exposure to radioactive substances and ionizing radiations; **manufacturing brick, tile and related…

Key Concepts

OSHA framework - The OSHA standards that apply to the construction industry are 29 CFR 1926 (Safety and Health Regulations for the Construction Industry), 29 CFR 1910 (Occupational Safety and Health Standards), and 29 CFR 1904 (Recording and Reporting Occupational Injuries and Illnesses). (Chapter 5, Jobsite Safety and Environmental Factors) - All employers are subject to federal OSHA requirements; some states have adopted a state plan, and state standards are at least as strict as the federal plan. Maryland's program (MOSH) must adopt standards identical to or "at least as effective as Federal OSHA standards." (Chapter 5 — Safety Standards) - All employers must post the OSHA poster (or state plan equivalent) in a prominent location; in construction, it must be posted at the location to which employees report each day. (Chapter 5 — Safety Standards)

Recordkeeping (Forms 300, 300A, 301) - Form 300A must be conspicuously posted by February 1 and kept in place until at least April 30 following the year covered. (Chapter 5 — OSHA Recordkeeping) - Records must be kept five years following the year to which they pertain. (Chapter 5) - A work-related fatality must be reported orally to the nearest OSHA Area Office within 8 hours. Under 29 CFR 1904.39, in-patient hospitalizations, amputations, or losses of an eye are reported within 24 hours. (Chapter 5 — OSHA Recordkeeping) - Exposure records (toxic substances, harmful physical agents): 30 years. Medical records: duration of employment plus 30 years. (Chapter 5)

Key Concepts

• Bid package contents. A competitive bid package often includes an invitation to bid, bid instructions, bid forms (bid sheet, bid schedule, bidder's questionnaire, copy of the contract) and supplements such as a property survey and soil analysis. A bid can be ruled non-responsive if information is incorrectly submitted or omitted (Ch. 2, Bid Documents, p. 2-1).
• Addendum. If changes are made to a bid package before it is due, an addendum is issued. It becomes part of the bid documents and, ultimately, part of the contract when awarded; all addenda must be reviewed to evaluate the impact on the bid (Ch. 2, Bid Documents, p. 2-1).
• Ethics in bidding (Ch. 2, Ethics in Bidding, p. 2-2) — some state statutes forbid these on public projects:
• Bid shopping — the general contractor approaches subcontractors other than those who bid, reveals original bids, and seeks a lower price.
• Bid peddling — the subcontractor approaches the GC after award to lower the price submitted on bid day.
• Bid rigging — collusion where contractors coordinate bids to fix the award outcome.
• Estimate definition and accuracy. An estimate is the sum of the costs to complete the project plus added overhead and profit margin; a good estimate falls within 1 percent to 2 percent of actual construction costs (Ch. 2, Estimate Planning, p. 2-2).
• Estimating framework. The first step is defining the phases of the project (e.g., preconstruction, construction, post-construction); then list each task and the materials needed for each phase, then enter time and cost. The framework converts into the job schedule if awarded. CSI MasterFormat is a checklist tool (Ch. 2, *Estimating…