MHIC Contracts and Estimating 4

Question 1

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

Accepted Answer

3 business days

Answer

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

Question 2

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?

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

Unforeseen conditions clause

Answer

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

Question 4

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?

Accepted Answer

10–15%

Answer

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

Question 5

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

Accepted Answer

On the face of the contract

Answer

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

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC Contracts and Estimating 4