MHIC Maryland Laws

dclhomeworksllc

We are a small sized property managment company that does a lot of renovation work in Maryland. We just applied for our Maryland Home Improvement Liscence but are worried about some of the laws governing the trade.

It says that we cannot use any subcontrator that is not MHIC liscensed, but many of the companies in our area are not MHIC liscenced. Is there anyway that a non-MHIC subcontractor can do work for us? To be in line with the law do we have to use all MHIC liscensed sub contractors?

Any help or personal expierences regarding this would be greatly appreciated.

Mud Master

I had a MHIC for years, however with my type of work it did not pay me to shell out $330.00/year to do a $100.00 patch for a homeowner. My general contractor license(Construction Firm) is more than enough for me and it costs me $17.00/year.

I do hang and finish high end custom homes and large additions for builders, and we have never had a discrepency over me not having an MHIC.

From my understanding, the contract to which the work is regarding HAS TO BE SIGNED BY AN MHIC LICENSED CONTRACTOR. However, they can use sub's of any nature, because they are in fact working under his license. As long as you are MHIC licensed, you can use anyone you please, as long as they have SOME kind of license with the state.

Now, I know alot of contractors that use unlicensed hispanics, but that is thier choice, and if something goes wrong it is on thier shoulders.

There are 3 types of MHIC licenses...General Contractor,Subcontractor,and Salesman.

A General Contractor can engage in any type of home improvement work,contract or anything there after.

A Sub Contractor CANNOT engage in a home improvement contract of any sorts, and may only do work for a licensed GENERAL CONTRACTOR.

A Salesman May sell home improvement work.

For me personally, my license covers commercial and NEW residential. I am mainly a commercial contractor, but as I said earlier I do hang and finish custom's and additions. I have spoken with the MHIC regarding this matter when I opted to drop my home improvement license. They stated that I may not personally engage in home improvement work or home improvement contracts, but I may do work for a licensed MHIC contractor, as long as the contract is signed under them.

Hope that helps!!!

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send_it_all

Here in California, I am only permitted to use licensed subs. Furthermore, I get periodic audits from my worker's comp carrier to make sure that any subs I use carry their own w/c, and if they dont I get charged for it. Also, my general liability carrier only wants me to use subs who have a general liability policy of equal or greater than mine ($2,000,000 aggregate, $1,000,000) per occurence) AND they have to provide me a certificate naming me as additional insured if they are to do work for me. It's alot of fun contracting here.


Did I mention that my worker's comp rate for emplyees making less than $23/hr. is $40 per $100?

phinsher

MHIC law

§8–301.
(a) Except as otherwise provided in this title, a person must have a contractor license whenever the person acts as a contractor in the State.
(b) Except as otherwise provided in this title, a person must have a subcontractor license or contractor license whenever the person acts as a subcontractor in the State.
(c) Except as otherwise provided in this title, a person must have a salesperson license or contractor license whenever the person sells a home improvement in the State.
(d) This section does not apply to:
(1) an individual who works for a contractor or subcontractor for a salary or wages but who is not a salesperson for the contractor;
(2) a clerical employee, retail clerk, or other employee of a licensed contractor who is not a salesperson, as to a transaction on the premises of the licensed contractor;
(3) a solicitor for a contractor who calls an owner by telephone only;
(4) an architect, electrician, plumber, heating, ventilation, air-conditioning, or refrigeration contractor, or other person who:
(i) is required by State or local law to meet standards of competency or experience before engaging in an occupation or profession;
(ii) currently is licensed in that occupation or profession under State or local law; and
(iii) is:
1. acting only within the scope of that occupation or profession; or
2. installing a central heating or air-conditioning system;
(5) a security systems technician licensed under Title 18 of the Business Occupations and Professions Article; or
(6) a person who is selling a home improvement to be performed by a person described in item (4) of this subsection.

Dalmatino

Question for you Phinisher, IF one has Md MHIC license ,can he do business ,in the District of Columbia and Virginia under that license

rbsremodeling

No. You need a DC or VA License.

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RizzoMaryland

Here in Maryland, ALL subcontractors must maintain a subcontractors license from the Maryland Home Improvement Commission. The difference between a subcontractors license and a GC or salesman license is that the subcontractor license does not permit you to work directly with a homeowner. But you still need to have it.

Why not use licensed subs?

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Chap

This is the correct answer.

Sterner

This is a State of MD license from MHIC?
What are the requirements & can you point me to someplace on the web that will give me more information?

bujaly

This is a license to do business in MD for "Home Improvements", this does not cover new homes. Here's the dllr site.. http://www.dllr.state.md.us/license/occprof/homeim.html

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masterk

This test has nothing to do with home improvements. It's all to do with the legal end of the bussiness. Study the book.

Sterner

I think it was the $17.00 per year that threw me. No license categoy listed at MHIC that offers a renewal for only $17.00.

bujaly

I'm completely lost on your statement there, but I don't know where you got $17 from.. The test costs $55 and the license is $325 for GC licensing.

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Sterner

Re-read post number 2 of this thread. Mudmaster stated "My general contractor license(Construction Firm) is more than enough for me and it costs me $17.00/year."

My original post to this thread was inquiring of MudMaster as to what "general contractor" license he was reffering to that was $17.00 per year to renew.

Somewhere in the thread things became a bit convoluted between MudMaster's $17.00 license and your information regarding the MHIC licensing.

Mudmaster: I'm still curious as to what type of license you are reffering to?

rbsremodeling

the 17.00 dollar fee is for a commercial contractor license that MD gives you. I does not cover residential home improvement. It is for apartments and commercial work.

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Gnr

I am a small interior contractor and I do have my MHIC license. Been licensed for 5 years. I always throught that the state of maryland will help us licensed guys to obtain work. Does anyone have any suggestions.

tedanderson

Go to emarylandmarketplace.com

They list all of the contracts and bidding opportunities from state and local agencies in MD. Secondly, find a couple of HUD 203k inspectors. Most times they act as a contractor themselves, but when they run into situations where they need someone with an MHIC, you will be the guy that they call.

tedanderson

Not if you take them on as employees and supervise the job assuming full responsibility for it. Typically the commission doesn't want a situation where you act as the salesman and then sub the job out to any regular Joe with tools and a truck. This can become very complicated because if the sub's liability insurance didn't cover the type of work that he performed (in the event of a loss), then the guarantee fund would have to pay out on the behalf of someone who isn't paying into it.

laxdad

the mhic tests are all about the running of a business as it pertains to your part. gc, sub, sales....

without an mhic lic you can sub new construction, you can sub rental/investment props, commercial, etc.... you cannot sub or enter into contract with the homeowner in a residential situation. does not mean it doesn't happen. it happens all the time unfortunately.

it's not expensive, it's not really hard... but i do get the resistance in some way by the guys i talk to. i can work on your house a few weeks before settlemnt, but not 1 minute after.

Mud Master

Eh, I went back and renewed ours.

I still do very little resi, but it helps as protection if someone were to call me with a project. In these times I'm not gonna totally snub a resi project, but I'd still rather fish in the comm/industrial market if it got that bad for me than work for a HO.

If your gonna do it, do it right. I know a couple guys that got caught without an MHIC. One got off with a slap on the hand, the other got a huge fine.

Don't take the chance.

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