Here you will find information on issues related to the construction or repair of your home. In Maine, general contractors - and trades such as roofing and framing - are not licensed or regulated. This can be a surprise, particularly for newcomers who are used to living in states with strict regulatory regimes. We urge consumers to do a lot of research before choosing a contractor to build or repair your home. Below is a discussion of laws governing home construction contracts, such as the Home Construction Contracts Act.
Home Construction and Repair downloadables
- Consumer Law Guide, Chapter 17: Home Construction and Repair (Word)
- Sample Home Construction Contract with required addendum (Word)
- Sample Home Construction Contract Change Order (Word)
- Home Construction Contracts Required Addendum (Word)
Guide to Home Construction and Repair
- You Must Have a Written Contract for any Home Construction or Repair that Costs More than $3,000
Maine law requires a written contract between a contractor and homeowner or lessee for any home construction or repair work that costs more than $3,000.[1] “Home construction” means any work that involves building, remodeling or repairing a residence, including electrical, plumbing, and heating work, as well as nonstructural work, such as installing carpets or window replacements.
The contract must have certain provisions, including the total contract price, the estimated dates when the work will begin and end, a description of the work and materials, and an express warranty of good workmanship. The contractor can’t require you to pay more than 1/3 of the contract price as a down payment unless you and the contractor agree to exempt yourself from this requirement.
Any change in the work or materials that changes the contract price must be stated in a written change order that is signed by both parties; and both the previous contract price and the revised price must be stated.[2]
You and your contractor can agree to exempt yourselves from any or all of the above requirements, but only if the contractor has informed you of your rights, and you both agree in writing.[3] Make sure you understand what you are giving up if the contractor asks you to agree to an exemption from a required provision. Look at the section below on the model home construction contract and the model change order to see the provisions that are required by law.
A contractor’s failure to have a written home construction contract is a violation of law and is evidence of a violation of the Maine Unfair Trade Practices Act.[4] It does not automatically entitle the consumer to a remedy if they sue. In order to recover in a lawsuit, the consumer must prove they suffered a substantial loss of money or property resulting from the contractor’s failure to provide a written contract.[5]
In the absence of a written agreement, courts may nonetheless find that there is an implied agreement and award compensation to a contractor for work performed.[6]
[1] See Title 10 Maine Revised Statutes section 1487. The requirement for a contract applies whether you own your home or rent it.
[2] 10 Maine Revised Statutes section 1488.
[3] 10 Maine Revised Statutes section 1489.
[4] Title 5 Maine Revised Statutes sections 205-A through 214.
[5] Sweet v. Breivogel, 2019 ME 18, 201 A.3d 1215. Although finding no compensable injury stemming from the lack of a written agreement, the court warned that the absence of a written contract can lead to unfulfilled expectations, immense confusion and costly litigation
[6] Id. ¶ 17.
- Find Out If Your Municipality Has a Building Code
Any municipality that has more than 4,000 residents must enforce the Maine Uniform Building and Energy Code (the “MUBEC”), which imposes statewide minimum requirements for all new construction and additions to existing buildings.[1] Developers and builders should make sure that their plans and specifications are compliant with its provisions if applicable. When you hire a contractor for any home construction or repair work, insist that the contract have a provision that the work shall be done in accordance with the MUBEC.[2]
- What to Do About Unsatisfactory or Incomplete Construction or Repair Work
The problems that consumers have with their contractors over home construction and repairs usually fall into three categories, which are set forth below along with our suggestions on how to deal with them.
Your contractor (including any subcontractor) did some work that was satisfactory, but they didn’t complete the work or failed to do some of it correctly.
Write a letter to the contractor describing all the work that they agreed to perform but failed to do, or failed to do correctly, and ask him or her to tell you within 10 days when the work will be finished. Keep a copy of your letter. The contractor should complete the work within a reasonable time after you send your demand - 10 to 30 days would be reasonable depending on how much is left to be done. If the contractor doesn’t respond or tells you that they isn’t going to do any more work, you’re free to hire someone else to finish the work. You can then sue the contractor for your damages (financial loss), including the cost of repair.[1]
Your contractor (including any subcontractor) did poor work throughout and/or used defective materials.
The quality of the work that was done by your contractor or subcontractor is best judged by a qualified independent contractor. Ask an independent contractor to inspect the work and give you a written report of the work that was done, its value, and the cost to correct it. Once you have the report, write to your contractor to explain what’s wrong with the work and to demand that they pay you the cost to correct the work. Keep a copy of your letter. You don’t have to let the original contractor return to try to fix the work, but sometimes that is all they will offer. If you’re not satisfied with his or her response, you can sue your contractor for your damages.
Your contractor (including any subcontractor) didn’t do any work.
Send a letter to your contractor stating that you’re cancelling the contract and you want your money back. Keep a copy of your letter. Give him or her a reasonable time to respond - 14 to 30 days. If your contractor doesn’t return your money, you can sue him or her for the return of your money. You can also file a report with the police for home construction or repair fraud.[2] Police sometimes consider it to be a civil contract matter, however, and they may decline to pursue a criminal charge against the contractor.
[1] The measure of recovery for defective performance under a construction contract is the difference in value between the value of the work contracted for and the value of the work actually performed. That difference may be proved by evidence of reduction in market value or of the amount reasonably required to remedy the defect. Van Voorhees v. Dodge, 679 A.2d 1077, 1081 (Me. 1996).
[2] Pursuant to Title 17-A Maine Revised Statutes section 908(1)(C), a home construction or repair “seller” is guilty of home construction or repair fraud if the seller intentionally promises performance under a contract that he or she doesn’t intend to perform or knows won’t be performed. See section 908 for other acts by a seller of home construction or repair that constitute fraud.
- What to Do About Unsatisfactory Plumbing, Electrical or Septic System Work
The State of Maine licenses plumbers and electricians, who are subject to disciplinary action by their licensing board if they violate Maine law or the board’s rules. Site evaluators, who design septic systems, must be licensed by the Division of Environmental and Community Health in the Maine Department of Health and Human Services (“DHHS”). Septic system installers, however, don’t have to be licensed.[1] If you have a complaint about any plumbing, electrical or septic system work that was done at your home, we suggest that you take the following steps.
Plumbing Complaints
- Contact the business to try to resolve your complaint.
- If the business doesn’t satisfy your complaint, contact your municipality’s plumbing inspector to ask for an on-site inspection and a written opinion on the quality of the plumbing that was done.
- Contact the Plumbers’ Examining Board at (207) 624-8639. Ask for an on-site inspection and a copy of the written inspection report.
- Contact at least one other plumber to get a written estimate for any work that is necessary to correct the problem.
Electrical Complaints
- Contact the business to try to resolve your complaint.
- If the business doesn’t satisfy your complaint, contact your municipality’s code enforcement officer to ask for an on-site inspection and a written opinion on the quality of the electrical work that was done.
- Contact the Electricians’ Examining Board at (207) 624-8457. Ask for an on-site inspection and a copy of the written inspection report.
- Contact at least one other electrician to get a written estimate for any work that is necessary to correct the problem.
Septic System Complaints
- Contact the business to try to resolve your complaint.
- Obtain the certified site evaluation plan from the site evaluator or engineer who designed your septic system.
- Contact your municipality’s plumbing inspector to ask for an on-site inspection and a written opinion on the quality of the work that was done on the septic system.
- Contact at least one other contractor to get a written estimate for any work that is necessary to correct the problem.
[1] A septic system installer may obtain a voluntary certification as a certified installer from the Division of Environmental and Community Health upon completion of the required training.
- Suing Your Contractor
Before you sue your contractor, we suggest that you read our guide on how to resolve a consumer complaint. If your claim is for less than $10,000, you can sue your contractor yourself in Small Claims Court. Information on the process and the forms that you’ll need are on the Small Claims Court website. If your claim is for more than $10,000, you should consult with an attorney about bringing the case in either District Court or Superior Court.
- Beware of Mechanic’s Liens
A contractor or subcontractor who works on your home, or the land around it, can obtain a mechanic’s lien against your home if they are not paid.[1] Maine’s mechanic’s lien law also covers work performed by architects, landscapers, and building movers.[2] They can claim a lien without a written contract, so long as you consented to the work or materials provided.
The lien must be filed in the appropriate county Registry of Deeds and then enforced by bringing an action in the appropriate Superior Court or District Court. If the lienor (the contractor or subcontractor) successfully enforces the lien and obtains a judgment from the court, they can then seek foreclosure.
To avoid a mechanic’s lien on your property, you should ask for a lien waiver when you make a payment to contractors or subcontractors. A lien waiver is evidence that the person who gave the waiver received payment in the amount indicated. Because a mechanic’s lien can have serious consequences for you as a homeowner, contact an attorney immediately if you find out that one has been filed on your property.
- The Attorney General’s Model Home Construction Contract and Model Change Order
You’re free to copy and use the Attorney General’s model home construction contract and model change order for your home construction project. The model contract meets the current statutory requirements for a written home construction contract.[1] Any part of the contract that contains language required by the law on home construction contracts is in quotes.
The model change order also meets the current statutory requirements for a change order to a home construction contract, which must be in writing and becomes a part of the original contract.[2]
Both of these documents are available for download at the top of this webpage.