The work of contractors on home improvement projects is one of the areas in which consumers are often disappointed. If your project has gotten off track, here are some tips that may help.
Topics on this page:
- Contact the Contractor
- Mediate
- File a Complaint with the Maryland Home Improvement Commission (MHIC)
- Finish the work and sue
Contact the Contractor
You should always start by reporting the problem to the contractor. Report the issue clearly and in writing. Give the contractor a reasonable opportunity to correct the problem before taking further action.
Prepare by reviewing your contract, along with any paper records that may be relevant. Make notes in advance so you won’t forget to discuss something important. Listen carefully if the contractor explains something. Even though you are not an expert, you can offer suggestions.
If you are upset, hold off on the discussion until you have cooled off. Name-calling, tears or other expressions of emotion make others uncomfortable. If others are uncomfortable, positive results and solutions are less likely.
If the contractor does not respond to you or does not resolve the problems, mediation may be a good next step.
Mediate
In mediation, the parties decide how to resolve the dispute with the help of a neutral, third-party (mediator). A mediator can be any neutral person or a trained professional. Being neutral means that the person is not connected to either of the parties. During a mediation, the mediator will:
- Listen as you explain the issues of the conflict
- Ask questions to help you and the other person clarify and understand the issues
- Guide you through a process to develop solutions
- Assist you in writing up an agreement that works for everyone involved.
A mediator will not:
- Take sides
- Assess blame
- Tell you what to do
- Force you to make decisions
You can hire an independent mediator or try to arrange mediation through a Maryland Community Mediation Center. These centers offer a neutral party to help resolve a dispute. If you do not reach an agreement in mediation, either side can still go to court.
The Maryland Home Improvement Commission, in partnership with Community Mediation Maryland and the University of Maryland School of Law's Mediation Clinic, has developed a program to help homeowners and contractors amicably resolve disputes for the benefit of both parties. The project offers an opportunity to reach a faster, easier, and cheaper resolution to conflicts. If successful, you will save time and money, and avoid the hassle of having to attend an administrative hearing. The best part is that mediation is free, voluntary and you decide whether or not to settle.
Contact the MHIC at 410-230-6309 or by email at DLOPLMHIC-LABOR@maryland.gov for more information about the mediation program.
Community Mediation Maryland also offers low cost mediation services.
If you do not reach an agreement through mediation, you may consider filing a complaint with MHIC.
File a Complaint with the MHIC
The Maryland Home Improvement Commission licenses and regulates home improvement contractors and salespersons. Consumers may file complaints against a contractor or salesperson with the Commission. The Commission investigates complaints, awards monetary damages and prosecutes violators of home improvement law and regulations. You can obtain a complaint form on the MHIC website or by calling 410-230-6309.
There is no monetary award for homeowners in the complaint process. To try to receive compensation for any monetary losses you suffered, you must file a claim form. The claim form is separate from the complaint form. By filing the claim form you are asking for compensation from the MHIC Guaranty Fund. To obtain a Guaranty Fund claim form, contact the investigator assigned to your complaint and ask them to send you one.
You must file your Guaranty Fund claim within three (3) years from the time you discovered any loss or damage made by the contractor. Remember, you can only file a Guaranty Fund claim if your contractor was licensed with the MHIC at the time he or she performed the work for you.
If your claim is for more than $7,500.00, a hearing is required. The hearing will be scheduled before the Office of Administrative Hearings. You must appear at the hearing and provide testimony and evidence about your claim. You will have the burden of proving your claim. The hearing process, including possible appeals, may take 2 or more years to complete. The maximum amount of money the MHIC Guaranty Fund may compensate you is $30,000.
Information about filing a Guaranty Fund claim, the hearing process, and your responsibilities at the hearing can be found on the MHIC’s website.
Finish the work and sue
Instead of filing a complaint with the MHIC, you could have someone else finish the work and sue the original contractor for the cost of completing the work. Prior to hiring a contractor to complete the work you should:
- Write a detailed letter to the contractor about the problem and give the original contractor a reasonable chance to correct the work.
- Get one or more detailed written estimates from other contractors detailing the cost of completing the work in the original contract.
If your claim is for $5,000 or less, you may be able to sue the home improvement contractor without a lawyer in the Small Claims Court, located at the District Court of Maryland. Your letter to the contractor, any reply he makes, and the estimates for completing the work are your evidence of the damage caused by his not completing the work properly. For more information, see the article on Small Claims.