Home improvement projects can increase property values and make a home more attractive and enjoyable. However, these undertakings introduce risks for both homeowners and those performing the work. When formed and executed properly, Indiana home improvement contracts can protect consumers and contractors alike.
Questions about HICA and Indiana Home Improvement Contracts
The Indiana Home Improvement Contract Act (HICA) details when these contracts must be used, what must be included, and other aspects of the law, like modification or cancellation of a contract and penalties for violations.
Home improvement contracts can protect the interests of all parties, but they must comply with construction laws in Indiana and be properly executed. The Indianapolis construction attorneys at Camden & Meridew draft, review, and finalize contracts for contractors and homeowners. We also help parties on both sides of construction disputes through the legal processes required when a contract is breached or other issues arise.
These are four common questions our attorneys hear related to the Indiana Home Improvement Contract Act:
- What construction projects are subject to HICA?”
- What are the requirements for Indiana home improvement contracts?
- Can an Indiana home improvement contract be modified or canceled?
- What are the penalties for HICA violations?
Keep reading for answers to these questions and details about how to contact our Indianapolis construction attorneys for help with your home improvement contract questions or needs.
What Construction Projects Are Subject to HICA?
The Indiana Home Improvement Contract Act applies to any agreement, spoken or in writing, between a property owner and a supplier (contractor) for interior or exterior improvements to residential real property with costs exceeding $150 for materials, service, and labor.
What Are the Requirements for Indiana Home Improvement Contracts?
Among other requirements, HICA mandates the following:
- A home improvement contract must include a condition that all necessary permits and licenses will be obtained by the responsible parties before work begins.
- The contract must be easy to read and understand.
- The contract must include specific details and information about the parties and project as listed in Indiana Code § 24-5-11-10.
- The contractor must sign the agreement before the consumer is required to sign or make any down payment.
- The contractor must provide the consumer with a copy of the contract signed by all parties immediately upon signing.
HICA includes additional requirements, like conditions that apply when repairs are related to a claim filed with a homeowner’s insurer. An Indiana construction law attorney can draft and/or review your home improvement contract to ensure it complies with the law.
Can Indiana Home Improvement Contracts Be Modified or Canceled?
Under HICA, any modifications to home improvement contracts must be established in writing and signed by the consumer to be valid.
A property owner is entitled to cancel a home improvement contract in Indiana within three business days of signing. The consumer may also cancel an agreement when he or she has signed a home improvement contract for repairs expected to be covered by an insurance provider and received notice from the insurer that some or all costs are not covered.
Both scenarios require written notice to the contractor within three business days. Contractors are required to include a “Notice of Cancellation” form with the contract that may be used for this purpose.
What Are the Penalties for HICA Violations?
Violating the terms of the Indiana Home Improvement Contract Act is considered a “deceptive act” subject to the penalties included in Indiana’s Deceptive Consumer Sales Act. The consumer or the Indiana Attorney General (AG) may bring an action for damages related to these acts.
Penalties for contractors who commit a deceptive act may include payment of monetary damages, the consumer’s legal fees, and costs related to the AG’s investigation and prosecution. The court may also issue an injunction, void the contract or portions of it, and/or order restitution.
Help for Indiana Home Improvement Contracts and Claims
Starting with a properly drafted and executed contract is the best way to avoid potential disputes related to home improvement contracts and mitigate the damages if issues do arise.
The Indianapolis construction attorneys at Camden & Meridew, P.C. assist clients at all stages of matters related to Indiana home improvement contracts—from contract formation to dispute resolution and litigation, if necessary. Contact us by calling 317-770-0000 or completing this online contact form to schedule a consultation.