Contracts and Estimating Flashcards

Under Maryland Home Improvement Law, what is the maximum number of days a homeowner has to cancel a home improvement contract after signing?

Answer: 3 business days

Maryland law grants homeowners a 3-business-day right of rescission for home improvement contracts signed at their residence.

A contractor's written estimate for a roofing job comes in at $9,800, but the final bill is $12,500. What is the most likely legal issue?

Answer: The contractor violated the Maryland Consumer Protection Act by exceeding the estimate without written authorization

Significant cost overruns beyond a written estimate without prior written change orders can constitute a deceptive trade practice under Maryland law.

Which contract clause protects a contractor if unforeseen site conditions (e.g., hidden mold or rot) substantially increase the project cost?

Answer: Unforeseen conditions clause

An unforeseen conditions clause allows the contractor to seek additional compensation when hidden defects materially change the scope of work.

When preparing a materials estimate, a contractor should add a waste factor to account for cuts and defects. What typical waste factor is used for ceramic tile installations?

Answer: 10–15%

A 10–15% waste factor is standard for ceramic tile to account for cuts, breakage, and pattern matching.

A Maryland MHIC contract must include the contractor's license number. Where must it appear?

Answer: On the face of the contract

Maryland law requires the MHIC license number to appear prominently on the face of every home improvement contract.

A homeowner requests several add-ons mid-project. The best way for a contractor to document and price these changes is to use a:

Answer: Written change order signed by both parties before the work begins

A signed change order executed before the additional work begins protects both parties and is required by Maryland home improvement regulations.

If a subcontractor is not paid by the general contractor, what Maryland legal remedy can the subcontractor use against the homeowner's property?

Answer: File a mechanic's lien

Under Maryland law, unpaid subcontractors and suppliers may file a mechanic's lien against the improved property within prescribed deadlines.