The contractor you choose matters more than the cabinets, tile or shingles you pick. A good one keeps your project on budget and on schedule; a bad one can leave you with unpermitted work, liens and a half finished house. This guide explains how to hire a general contractor in Maryland, what state law requires and the questions to ask before you sign anything.
Key takeaways
- Every home improvement contractor in Maryland must hold a license from the Maryland Home Improvement Commission (MHIC). Check it online before you meet.
- Maryland law caps deposits at one third of the contract price.
- Your contract must be in writing and include the MHIC license number, a description of work and start and completion dates.
- Compare at least two or three detailed bids built on the same scope.
Step 1: Verify the MHIC license
Maryland requires a license from the Maryland Home Improvement Commission for anyone doing home improvement work on residential property. You can look up a license by name or number on the Maryland Department of Labor website. Licensed contractors also participate in the MHIC Guaranty Fund, which can compensate homeowners for certain losses caused by licensed contractors. Unlicensed contractors are not covered.
Samuel Construction Group is licensed under MHIC #134199 and is fully insured.
Step 2: Confirm insurance
Ask for a certificate of insurance sent directly from the insurance agent, showing general liability and workers compensation. If a worker without coverage is hurt on your property, you could be held responsible.
Step 3: Check reviews and past work
Read Google reviews, look at photos of completed projects similar to yours and ask for references from jobs finished in the last year. A contractor who has done basements for 15 years is not automatically the right choice for an addition.
Step 4: Get comparable bids
Give every contractor the same scope. A bid that is far below the others usually leaves something out, such as permits, debris removal or allowances that are too low to buy what you want. Ask for line items or at least a detailed scope description.
Want a detailed, line item estimate you can compare against other bids? We are happy to be one of your quotes.
12 questions to ask a general contractor
- What is your MHIC license number, and is it current?
- Can you provide a certificate of insurance from your agent?
- Who will run my project day to day, and how often will you be on site?
- Which trades are your employees and which are subcontractors? Are the subs licensed?
- Will you pull all required permits in your company’s name?
- What is included in your price, and what are the allowances for fixtures and finishes?
- How are change orders priced and approved?
- What is the payment schedule, and what is the deposit?
- What are the approximate start and substantial completion dates?
- How do you protect my home, and how do you clean up each day?
- What warranty do you provide on workmanship?
- Can I speak with two or three recent clients with similar projects?
Step 5: Read the contract carefully
Under Maryland law, a home improvement contract must be in writing and signed by both parties, and you must receive a copy before work starts. It must include, among other things:
- The contractor’s name, address and MHIC license number.
- A description of the work and the materials to be used.
- Approximate start and substantial completion dates.
- A notice with MHIC contact information and a statement about the Guaranty Fund.
- If the contract is secured by a lien on your home, a notice on the first page and a three business day right to cancel.
Step 6: Structure the payments
A Maryland contractor cannot accept a deposit greater than one third of the contract price, and no payment can be accepted before the contract is signed. After that, link payments to completed milestones, such as framing inspection passed or cabinets installed, rather than to dates. Hold a final payment until the punch list is complete and the final inspection is approved.
Red flags to walk away from
- Asks for most of the money up front or cash only.
- Will not put the price or scope in writing.
- Suggests skipping permits to save money.
- Cannot show a license number or proof of insurance.
- Pressures you to sign the same day, or shows up uninvited after a storm.
General contractor or handyman?
A handyman is ideal for small repairs: a leaky faucet, drywall patch, door adjustment or a punch list. A general contractor coordinates multiple trades, permits and inspections for remodels, additions, roofs and decks. We offer both through our handyman services and full remodeling and construction services, so you are never paying general contractor overhead for a small job.
Frequently asked questions
How do I check a contractor’s license in Maryland?
Search the Maryland Home Improvement Commission license lookup on the Maryland Department of Labor website by name or license number. Samuel Construction Group is licensed under MHIC #134199.
How much should I pay a contractor up front in Maryland?
Maryland law caps a home improvement deposit at one third of the contract price, and no money can be accepted before the contract is signed.
What should be in a home improvement contract in Maryland?
The contractor’s name, address and MHIC number, a description of work and materials, approximate start and completion dates, MHIC and Guaranty Fund notices, and lien notices if the contract is secured by your home.
How many bids should I get for a remodel?
Two or three detailed bids based on the same scope are usually enough to understand fair pricing without delaying your project.
Talk to a licensed Frederick general contractor
We have served Frederick, Hagerstown and nearby Maryland for more than 15 years with written estimates, permits pulled in our name and clear payment schedules. Request your free estimate or call (240) 875-4120. You can also learn more about our team.