In an effort to save money on the costs of home improvement, it is understandable that homeowners and even other contractors may be enticed by the lowest bid. However, beware the unlicensed contractor. 

The Maryland Home Improvement Law was enacted to protect the general public from unqualified persons performing home improvement work. The Home Improvement Law requires certain home improvement contractors to be licensed and establishes the Maryland Home Improvement Commission to administer and enforce the laws. For example, a contractor performing remodeling work in a private residence is generally subject to the Home Improvement Law and must be licensed. The law provides certain protections for those homeowners who have suffered actual loss as the result of a contractor’s shoddy work.

The Maryland Court of Appeals recently reaffirmed that the Home Improvement Law was enacted to protect the public, and the public only. It is well settled that the Maryland courts will not assist a contractor, who is subject to the Home Improvement Law, in enforcing a contract against a homeowner for payment for work performed without a license. However, the same rule does not apply between contractors. In Stalker Brothers, Inc. v. Alcoa Concrete Masonry, Inc., a general contractor hired a subcontractor to perform home improvement work. Eventually, the subcontractor filed suit against the general contractor for failure to pay pursuant to the subcontract agreement. The general contractor claimed that the contract was unenforceable pursuant to the Home Improvement Law because the subcontractor was not licensed. 

The Court of Appeals held the contract was enforceable. The Court determined there was no indication that the Home Improvement Law was intended to protect general contractors from unlicensed subcontractors. A general contractor and a subcontractor are engaged in the same profession and are in a position to know the qualifications and experience of the other. An unsuspecting homeowner, however, who is not in the business of home improvement needs protection from those persons who are not qualified to perform the work.