Residential Construction Contract (Home Improvement)MarylandContinue ↓

Maryland Residential Construction Contract (Home Improvement) (2026)

A contract between a homeowner and a contractor for building, remodeling or repair work — scope, schedule, price, payment milestones, change orders, insurance, warranty and the notices your state requires in the contract.

Updated September 2026≈ 9 minReviewed against Md. Code, Bus. Reg. § 8-501 · Md. Code, Bus. Reg. § 8-617
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Sample first page of the Residential Construction Contract (Home Improvement). Your answers fill in the blanks; the clauses required in Maryland are added automatically.

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Sample first page of the Residential Construction Contract (Home Improvement): title block and opening sections with blanks to fill

Sample first page of the Residential Construction Contract (Home Improvement). Your answers fill in the blanks; the clauses required in Maryland are added automatically.

This preview updates as you type. Blank fields show as ____ .

What this document covers

  • Owner, contractor and licence number
  • Project address and full scope of work
  • Start date and substantial completion date
  • Fixed price, cost-plus or time and materials
  • Down payment inside your state's legal cap
  • Payment milestones tied to the work
  • Written change-order procedure
  • Permits, inspections and code compliance
  • General liability and workers' compensation
  • Warranty, termination, disputes and the notices your state mandates

Maryland rules that this document follows

Contractor licenseMaryland Home Improvement Commission (MHIC) — The contract must state the contractor's name, address, telephone number and MHIC licence number, the salesperson's name and licence number, and must tell the owner that each contractor must be licensed by the Commission and how to reach it.Source: Md. Code, Bus. Reg. § 8-501
License number on the contractRequired — the contract must state itSource: Md. Code, Bus. Reg. § 8-501
Written contract requiredYes — A home improvement contract must be in writing and must contain the parties, the approximate start and completion dates, a description of the work and materials, the agreed price, the payment schedule including finance charges, any collateral security, and the Commission notice.Source: Md. Code, Bus. Reg. § 8-501
Down payment capone-third of the contract price — A person may not receive a deposit of more than one-third of the home improvement contract price before or at the time the contract is signed.Source: Md. Code, Bus. Reg. § 8-617(b)
Required noticesSECURITY INTEREST IN YOUR HOME — THREE-DAY RESCISSIONSource: Md. Code, Bus. Reg. § 8-501
Right to cancel3 business days — Where the contract takes a security interest in the owner's residence, the owner may rescind within three business days and the contract must say so in 10-point bold type on the first page.Source: Md. Code, Bus. Reg. § 8-501

Rules current as of 2026-09-14. Statutes change; verify before relying on them.

How to use this Residential Construction Contract (Home Improvement) in Maryland

In Maryland the contract is regulated, not just recommended: A home improvement contract must be in writing and must contain the parties, the approximate start and completion dates, a description of the work and materials, the agreed price, the payment schedule including finance charges, any collateral security, and the Commission notice. (Md. Code, Bus. Reg. § 8-501) This template writes the scope, the dates, the price, the payment milestones and the change-order rule into one document and prints the notices your state requires around it.

Price the job in one of three ways. A fixed price puts the risk of overruns on the contractor and is what most homeowners should ask for. Cost plus a fee makes sense for open-ended renovation, but only with a not-to-exceed number and access to the books. Time and materials suits small repairs where nobody can scope the work in advance. Whatever you choose, the money at signing is capped: one-third of the contract price (Md. Code, Bus. Reg. § 8-617(b)). Tie the rest to milestones a person can stand in the room and verify — never to a calendar.

Put the licence number on the contract: The contract must state the contractor's name, address, telephone number and MHIC licence number, the salesperson's name and licence number, and must tell the owner that each contractor must be licensed by the Commission and how to reach it. (Md. Code, Bus. Reg. § 8-501) Ask for a certificate of general liability insurance and, where the contractor has employees, workers' compensation. An uninsured injury on your property is the one construction risk a homeowner cannot fix afterwards.

The contract has to carry the notices Maryland prescribes — SECURITY INTEREST IN YOUR HOME — THREE-DAY RESCISSION — and this template prints each of them. The owner's cancellation right is state law: Where the contract takes a security interest in the owner's residence, the owner may rescind within three business days and the contract must say so in 10-point bold type on the first page. (Md. Code, Bus. Reg. § 8-501) Sign before any work begins, hand the owner a full copy the same day, and collect a lien waiver with every payment.

Frequently asked questions

Does Maryland require a written home improvement contract?

Yes. A home improvement contract must be in writing and must contain the parties, the approximate start and completion dates, a description of the work and materials, the agreed price, the payment schedule including finance charges, any collateral security, and the Commission notice. (Md. Code, Bus. Reg. § 8-501)

How big a down payment can a contractor ask for in Maryland?

Yes. Maryland limits the down payment to one-third of the contract price (Md. Code, Bus. Reg. § 8-617(b)). Taking more is a licensing violation, and the owner can normally recover the excess.

Can I cancel a signed contract in Maryland?

Yes. Where the contract takes a security interest in the owner's residence, the owner may rescind within three business days and the contract must say so in 10-point bold type on the first page. (Md. Code, Bus. Reg. § 8-501)

What notices must the contract itself contain in Maryland?

These: SECURITY INTEREST IN YOUR HOME — THREE-DAY RESCISSION (Md. Code, Bus. Reg. § 8-501). This template prints each of them, using the statutory wording where the statute prescribes the words.

Does the contractor's license number have to be on the contract?

Yes. The contract must state the contractor's name, address, telephone number and MHIC licence number, the salesperson's name and licence number, and must tell the owner that each contractor must be licensed by the Commission and how to reach it. (Md. Code, Bus. Reg. § 8-501) A contract without it can expose the contractor to discipline and, in some states, make the contract hard to enforce.

Who pays if a subcontractor liens my house after I paid the contractor?

In most states the lien attaches to the house even though the owner paid, which is why this contract makes the contractor pay downstream and deliver a lien waiver with every payment. Collect the waivers before releasing each milestone, and keep the final payment until the last waiver is in hand.

Other names

  • home improvement contract
  • residential construction contract
  • remodeling contract
  • contractor agreement
  • general contractor contract
  • home remodeling agreement
  • renovation contract
  • construction agreement homeowner
  • home repair contract
  • builder contract

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FormsByState provides self-help document templates and general information, not legal advice. We are not a law firm. For advice about your situation consult a licensed attorney in your state.