MD MHIC Contractor study guide
MD MHIC Contractor · Work through your exam, one topic at a time.
The Maryland Home Improvement Commission (MHIC), part of the Maryland Department of Labor's Division of Occupational and Professional Licensing, licenses and regulates home improvement contractors and salespersons in Maryland. The MHIC contractor license is the credential a business needs before it may enter into a contract with a homeowner to perform home improvement work; the Commission states that only MHIC licensed contractors may contract with homeowners, while unlicensed subcontractors may work for a licensed contractor. The contractor's exam is administered by PSI Exams, a private testing firm, and the Commission publishes an exam application and a contractor's study guide. Expect multiple-choice questions spanning four areas: what counts as home improvement and what a contract must contain; the home improvement law and regulations the Commission enforces; the Guaranty Fund and how claims are filed and paid; and licensing, insurance, and business practices. The MD MHIC Contractor study guide has 4 sections and about 1,364 words.
01Home Improvement Work Scope and Contract Requirements
Maryland's Home Improvement Law sits in the Business Regulation Article (Title 8) and is administered by the Maryland Home Improvement Commission (MHIC). "Home improvement" means building, altering, repairing, replacing, or adding to residential real property, and it expressly reaches work such as roofs, siding, decks, fences, driveways, patios, swimming pools, insulation, and landscaping.
363 words, about 2 min02Maryland Home Improvement Law and Regulations
The Commission licenses contractors, subcontractors, and salespersons; investigates complaints; and holds hearings. On a finding of a violation it may reprimand, place on probation, suspend, or revoke a license, order restitution to the homeowner, and impose civil penalties (commonly up to $5,000 per violation).
350 words, about 2 min03Guaranty Fund and Claims Process
The Home Improvement Guaranty Fund reimburses homeowners who lose money to a licensed contractor's unworkmanlike work, abandonment, or failure to perform. It is not insurance and not a general warranty; it pays documented, actual loss within statutory caps.
346 words, about 2 min04Licensing, Insurance, and Business Practices
Contractor license: exam, at least two years of documented experience, fees, and compliance with workers' compensation and unemployment insurance requirements. Subcontractors and salespersons are licensed separately; salespersons work under a licensed contractor.
305 words, about 2 min