§ 5509.
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§ 5509. Requirements of registrants
(a)Insurance. A person registered under this chapter shall maintain minimum liability insurance coverage in the amount of $1,000,000.00 per occurrence and $2,000,000.00 aggregate, evidence of which may be required as a precondition to issuance or renewal of a registration.
(b)Writing.
(1)A person registered under this chapter shall execute a written contract prior to receiving a deposit or commencing residential construction work if the estimated value of the labor and materials exceeds $10,000.00.
(2)A contract shall specify:
(A)Price. One of the following provisions for the price of the contract:
(i)a maximum price for all work and materials;
(ii)a statement that billing and payment will be made on a time and materials basis, not to exceed a maximum price; or
(iii)a statement that billing and payment will be made on a time and materials basis and that there is no maximum price.
(B)Work dates. Estimated start and completion dates.
(C)Scope of work. A description of the services to be performed and a description of the materials to be used.
(D)Change order provision. A description of how and when amendments to the contract may be approved and documented, as agreed by the parties.
(3)The parties shall document an amendment to the contract in a signed writing.
(c)Down payment.
(1)If a contract specifies a maximum price for all work and materials or a statement that billing and payment will be made on a time and materials basis, not to exceed a maximum price, the contract may require a down payment of up to one-half of the cost of labor to the consumer, or one-half of the price of materials, whichever is greater.
(2)If a contract specifies that billing and payment will be made on a time and materials basis and that there is no maximum price, the contract may require a down payment as negotiated by the parties. (Added 2021, No. 182 (Adj. Sess.), § 14, eff. July 1, 2022.)