MHIC - Maryland Home Improvement Contractor Safety and Regulations Questions and Answers 1 — Questions and Answers
Question 1: A contractor is performing a renovation on a home built in 1965. The work involves disturbing more than 20 square feet of exterior painted surfaces. According to the EPA's Lead Renovation, Repair, and Painting (RRP) Rule, which of the following is a required action before work begins?
- Test the paint for lead content using an EPA-recognized test kit.
- Obtain a special permit from the Maryland Department of the Environment (MDE).
- Provide the homeowner with the EPA's "Renovate Right" lead hazard information pamphlet. (Correct answer)
- Encapsulate all painted surfaces regardless of their condition.
Correct answer: Provide the homeowner with the EPA's "Renovate Right" lead hazard information pamphlet.
The EPA's RRP Rule requires that for homes built before 1978, contractors must provide the owner with the "Renovate Right" lead hazard information pamphlet before starting any renovation that disturbs certain amounts of painted surfaces.
Question 2: A licensed contractor's work vehicle is used for transporting materials and tools to various job sites. According to MHIC regulations, what must be displayed on both sides of this vehicle?
- The company's full business name and phone number.
- A list of services offered by the contractor.
- The contractor's MHIC license number, preceded by "MHIC #". (Correct answer)
- Proof of general liability insurance.
Correct answer: The contractor's MHIC license number, preceded by "MHIC #".
MHIC regulations mandate that licensed contractors must conspicuously display their home improvement license number, preceded by the letters "MHIC #", on both sides of all work vehicles. The lettering must be at least 3 inches high.
Question 3: During a kitchen remodel, a homeowner requests a significant change to the cabinet layout that was not in the original signed contract. This change will add $2,500 to the total cost. What is the proper procedure for the contractor to follow?
- Complete the work as requested and add the extra cost to the final invoice.
- Have the salesperson who sold the job approve the change.
- Execute a written change order signed by both the homeowner and the contractor before performing the new work. (Correct answer)
- Get verbal approval from the homeowner and document it in the project notes.
Correct answer: Execute a written change order signed by both the homeowner and the contractor before performing the new work.
While the MHIC recommends all change orders be in writing, it is the best practice to avoid disputes. A written change order, agreed to and signed by both the contractor and the homeowner, creates a clear record of the new scope of work and cost, protecting both parties. The Door-to-Door Sales Act does not apply to transactions that are the result of a written change order.
Question 4: An MHIC licensed contractor fails to respond in writing to a formal complaint filed by a homeowner with the Commission. What is a potential disciplinary action the MHIC can take against the contractor for this failure to respond?
- Mandatory mediation with the homeowner.
- A fine of up to $500 and a formal warning.
- Automatic payment from the Guaranty Fund to the homeowner.
- Suspension of the contractor's license and a fine of up to $5,000. (Correct answer)
Correct answer: Suspension of the contractor's license and a fine of up to $5,000.
If a contractor fails to respond to a Notice of Complaint, the MHIC can schedule a show cause hearing. If the contractor is found to have violated the law by not responding, the Commission's Hearing Board can take disciplinary action, which may include suspending the license and imposing a fine of up to $5,000.
Question 5: Which of the following is a non-delegable duty of the prime contractor under Maryland Home Improvement Law?
- Performing at least 51% of the work with their own employees.
- Securing all necessary permits and licenses for the project. (Correct answer)
- Providing a 5-year warranty on all workmanship.
- Personally supervising the job site on a daily basis.
Correct answer: Securing all necessary permits and licenses for the project.
According to the Code of Maryland Regulations (COMAR), it is the non-delegable duty and obligation of the prime contractor to secure, or see to the securing of, every permit, license, or special exception necessary for the proper completion of the contract.
Question 6: A contractor's contract includes a mandatory arbitration clause. Which of the following is NOT a required disclosure within that clause according to MHIC regulations?
- The name of the person or organization that will conduct the arbitration.
- A statement that the arbitrator's findings are always legally binding. (Correct answer)
- A disclosure that a claim against the Guaranty Fund will be stayed until arbitration is complete.
- Any mandatory fees that will be charged to the parties for the arbitration.
Correct answer: A statement that the arbitrator's findings are always legally binding.
The arbitration clause must state *whether* the arbitrator's findings are binding, but it is not required that they must be. The clause must also name the arbitrator, disclose any fees, and state that a Guaranty Fund claim will be stayed pending arbitration.
MHIC - Maryland Home Improvement Contractor Safety and Regulations Questions and Answers 1
A contractor is performing a renovation on a home built in 1965.
The work involves disturbing more than 20 square feet of exterior painted surfaces.
According to the EPA's Lead Renovation, Repair, and Painting (RRP) Rule, which of the following is a required action before work begins?