Does my Home Improvement Contract Comply with the terms of the Home
Improvement Contract Act?
Under Indiana Code 24-5-11, agreements to improve, alter or repair
residential property must meet certain requirements in order for those
agreements to be enforceable by the contractor. To assist both home
owners and contractors, here is a checklist of items to consider in
evaluating a home improvement contract:
- Is the contract in writing?
- Is the name of the home owner set out in the contract?
- Is the street address of the residence to be worked on set out?
- Does it list the name, address and phone number of the contractor?
- Does it show the date the contract was given to the owner, and any
limitations on how long the owner has to accept the contract?
- Does the contract set out a detailed description of the proposed
work, including specifications (drawings, plans, materials list)?
- Does it set out the approximate date work will start and end?
- Does it set out what factors will extend the estimated completion
date?
- Does it set forth the total contract price for the improvement?
- Does it have a signature line for both the contractor and the home
owner(s), with the names of each typed out below it?
- Did the contractor sign the contract prior to the owner, and prior to any down
payment?
- Does it reflect the dates when both parties signed the
contract?
- Did the consumer get a copy of the contract that has been
signed by both parties?
- Is the contract easy to read and understand?
- Does it say: "IC 32-27-3 CONTAINS IMPORTANT REQUIREMENTS YOU MUST
FOLLOW BEFORE YOU MAY FILE A LAWSUIT FOR DEFECTIVE CONSTRUCTION AGAINST
THE CONTRACTOR OR BUILDER OF YOUR HOME. SIXTY (60) DAYS BEFORE YOU FILE
YOUR LAWSUIT, YOU MUST DELIVER TO THE CONTRACTOR OR BUILDER A WRITTEN
NOTICE OF ANY CONSTRUCTION CONDITIONS YOU ALLEGE ARE DEFECTIVE AND
PROVIDE YOUR CONTRACTOR OR BUILDER THE OPPORTUNITY TO MAKE AN OFFER TO
REPAIR OR PAY FOR THE DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER
MADE BY THE BUILDER OR CONTRACTOR. HOWEVER, IF YOU UNREASONABLY REJECT A
REASONABLE WRITTEN OFFER AND COMMENCE AN ACTION AGAINST THE BUILDER OR
CONTRACTOR, A COURT MAY AWARD ATTORNEY'S FEES AND COSTS TO THE BUILDER
OR CONTRACTOR. THERE ARE STRICT DEADLINES AND PROCEDURES UNDER STATE
LAW, AND FAILURE TO FOLLOW THEM MAY AFFECT YOUR ABILITY TO FILE A
LAWSUIT."
Note: Special
provisions apply when an insurance company or other party is paying for the
work. This list is not exhaustive, and both parties are advised to consult
an attorney if they have questions BEFORE entering such a contract.