Contracts and Estimating Flashcards
6 cards from real MHIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Contracts and Estimating flashcards as text
A change order increases the contract price by $3,000. Under Maryland Home Improvement Law, what is required for the change order to be valid?
Answer: It must be in writing and signed by both parties
Maryland Home Improvement Law requires all change orders to be in writing and signed by both the contractor and the homeowner. Oral change orders are not enforceable.
When preparing a home improvement estimate in Maryland, which of the following should a contractor do to protect themselves from material cost increases?
Answer: Include a written escalation clause in the contract
A written escalation clause included in the contract is the proper way to protect against material cost increases. Verbal discussions are not enforceable, and hidden contingencies can be considered deceptive.
A Maryland home improvement contract must include estimated dates for which of the following?
Answer: Both start and completion of the work
Maryland Home Improvement Law requires contracts to include both estimated start and completion dates. This helps hold contractors accountable for timely performance.
A homeowner requests that a kitchen renovation contract include a clause that requires the contractor to use only materials from a specific brand. Is this permissible?
Answer: Yes, homeowners can specify material requirements in the contract
Maryland home improvement contracts can include homeowner-specified material requirements. Contractors must honor contractual material specifications agreed upon by both parties.
For a home improvement contract in Maryland, the project description requirement means the contractor must include:
Answer: A reasonably detailed description of the work to be performed
Maryland law requires a reasonably detailed description of the work to be performed in every home improvement contract. Vague or incomplete descriptions can lead to disputes and MHIC complaints.
Under Maryland Home Improvement Law, what must a contractor do if they cannot complete a project due to unforeseen circumstances beyond their control?
Answer: Notify the homeowner in writing and negotiate a contract modification
When unforeseen circumstances prevent completion, a contractor must notify the homeowner in writing and negotiate a contract modification. Abandonment without notice is a serious violation.