Maine Revised Statutes Title 10 Sec. 1487 – Home construction contracts
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Any home construction contract for more than $3,000 in materials or labor must be in writing and must be signed by both the home construction contractor and the homeowner or lessee. Both the contractor and the homeowner or lessee must receive a copy of the executed contract prior to any work performance. This basic contract must contain the entire agreement between the homeowner or lessee and the home construction contractor and must contain at least the following parts: [PL 2003, c. 85, §1 (AMD).]
1. Names of parties. The name, address and phone number of both the home construction contractor and the homeowner or lessee;
[PL 1987, c. 574 (NEW).]
Terms Used In Maine Revised Statutes Title 10 Sec. 1487
- Change orders: means a written amendment to the home construction contract which becomes part of and is in conformance with the existing contract. See Maine Revised Statutes Title 10 Sec. 1486
- Contract: A legal written agreement that becomes binding when signed.
- Down payment: means all payments to a home construction contractor prior to or contemporaneous with the execution of the home construction contract. See Maine Revised Statutes Title 10 Sec. 1486
- Home construction contract: means a contract to build, remodel or repair a residence, including not only structural work but also electrical, plumbing and heating work; carpeting; window replacements; and other nonstructural work. See Maine Revised Statutes Title 10 Sec. 1486
- in writing: include printing and other modes of making legible words. See Maine Revised Statutes Title 1 Sec. 72
- Lawsuit: A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty, resulting in harm to the plaintiff.
- Materials: means all supplies which are used to construct, alter or repair a residence. See Maine Revised Statutes Title 10 Sec. 1486
- Residence: means a dwelling with 3 or fewer living units and garages, if any. See Maine Revised Statutes Title 10 Sec. 1486
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
2. Location. The location of the property upon which the construction work is to be done;
[PL 1987, c. 574 (NEW).]
3. Work dates. Both the estimated date of commencement of work and the estimated date when the work will be substantially completed. The estimated date of commencement of work and the completion date may be changed if work can not begin or end due to circumstances beyond the control of the contractor, including, but not limited to, the lack of readiness of the job site or the unavailability of building materials;
[PL 2003, c. 85, §2 (AMD).]
4. Contract price. The total contract price, including all costs to be incurred in the proper performance of the work, or, if the work is priced according to a “cost-plus” formula, the agreed-upon price and an estimate of the cost of labor and materials;
[PL 1987, c. 574 (NEW).]
5. Payment. The method of payment, with the initial down payment being limited to no more than 1/3 of the total contract price;
[PL 1987, c. 574 (NEW).]
6. Description of the work. A general description of the work and materials to be used;
[PL 1987, c. 574 (NEW).]
7. Warranty. A warranty statement which reads:
“In addition to any additional warranties agreed to by the parties, the contractor warrants that the work will be free from faulty materials; constructed according to the standards of the building code applicable for this location; constructed in a skillful manner and fit for habitation or appropriate use. The warranty rights and remedies set forth in the Maine Uniform Commercial Code apply to this contract”;
[PL 1989, c. 248, §2 (AMD).]
8. Resolution of disputes. A statement allowing the parties the option to adopt one of 3 methods of resolving contract disputes in addition to the option of a small claims action. At a minimum, this statement must provide the following information:
“If a dispute arises concerning the provisions of this contract or the performance by the parties that may not be resolved through a small claims action, then the parties agree to settle this dispute by jointly paying for one of the following (check only one):
(1) Binding arbitration under the Maine Uniform Arbitration Act, in which the parties agree to accept as final the arbitrator’s decision ( );
(2) Nonbinding arbitration, with the parties free to reject the arbitrator’s decision and to seek a solution through other means, including a lawsuit ( ); or
(3) Mediation, in which the parties negotiate through a neutral mediator in an effort to resolve their differences in advance of filing a lawsuit ( )”;
[PL 2009, c. 173, §1 (AMD).]
9. Change orders. A change order statement which reads:
“Any alteration or deviation from the above contractual specifications that results in a revision of the contract price will be executed only upon the parties entering into a written change order”;
[PL 1989, c. 248, §2 (AMD).]
10. Door-to-door sales. If the contract is being used for sales regulated by the consumer solicitation sales law, Title 32, chapter 69, subchapter V or the home solicitation sales law, Title 9?A, Part 5, a description of the consumer’s rights to avoid the contract, as set forth in these laws;
[PL 1989, c. 193, §1 (AMD).]
11. Residential insulation. If the construction includes installation of insulation in an existing residence, any disclosures required by chapter 219, Insulation Contractors;
[PL 2005, c. 619, §1 (AMD); PL 2005, c. 619, §6 (AFF).]
12. Energy standards. A statement by the contractor that chapter 214 establishes minimum energy efficiency building standards for new residential construction, and whether the new building or an addition to an existing building will meet or exceed those standards;
[PL 2005, c. 619, §2 (AMD); PL 2005, c. 619, §6 (AFF).]
13. Consumer protection information. As an addendum to the contract, a copy of the Attorney General’s consumer protection information on home construction and repair, which includes information on contractors successfully sued by the State, as provided on the Attorney General’s publicly accessible website; and
[PL 2005, c. 619, §3 (NEW); PL 2005, c. 619, §6 (AFF).]
14. Attorney General’s publicly accessible website. A clear and conspicuous notice that states that consumers are strongly advised to visit the Attorney General’s publicly accessible website to gather current information on how to enforce their rights when constructing or repairing their homes, as well as the Attorney General’s publicly accessible website address and telephone number.
[PL 2005, c. 619, §4 (NEW); PL 2005, c. 619, §6 (AFF).]
SECTION HISTORY
PL 1987, c. 574 (NEW). PL 1989, c. 193, §§1,2 (AMD). PL 1989, c. 248, §2 (AMD). PL 2003, c. 85, §§1,2 (AMD). PL 2005, c. 619, §§1-4 (AMD). PL 2005, c. 619, §6 (AFF). PL 2009, c. 173, §1 (AMD).