MHIC Licensing — Who Needs a Maryland Home Improvement License
Maryland does not issue a general commercial contractor license. Instead, the Maryland Home Improvement Commission (MHIC) licenses the people who repair and remodel existing homes. This chapter covers the MHIC, what counts as 'home improvement,' the license categories, the qualifications, and the exam itself.
The MHIC and the Maryland Home Improvement Law (Bus. Reg. Title 8)
Residential home-improvement contractors in Maryland are licensed by the Maryland Home Improvement Commission (MHIC), part of the Maryland Department of Labor, Division of Occupational and Professional Licensing. Its authority is the Maryland Home Improvement Law, codified in the Business Regulation Article, Title 8. 'Home improvement' means the repair, replacement, remodeling, alteration, conversion, modernization, or improvement of an existing residence or the land around it — think kitchens, baths, roofing, decks, additions, and siding. It is important to understand what MHIC does NOT cover: building a brand-new home is not home improvement. New-home builders register separately with the Home Builder Registration Unit of the Maryland Attorney General's Consumer Protection Division, not with the MHIC.
License categories: contractor and salesperson
The MHIC issues a Home Improvement Contractor license to a business or individual that performs or agrees to perform home improvements for a homeowner, and a Home Improvement Salesperson license to a person who solicits or sells home-improvement contracts on a licensed contractor's behalf (a salesperson may represent up to two licensed contractors). Maryland eliminated the separate subcontractor license category on July 1, 2016 — a subcontractor working under a licensed contractor no longer needs an individual MHIC license, but only a licensed contractor may sign the contract with the homeowner. A home-improvement job of $500 or more requires an MHIC-licensed contractor.
Qualifications and the MHIC exam
To be licensed, an applicant must be at least 18, show at least two years of experience in home-improvement work, construction, or related education, demonstrate financial solvency (a review of assets, liabilities, net worth, and a credit report — an applicant who falls short may post a surety bond or obtain an indemnitor), and pass the MHIC examination. The exam is administered by PSI Examination Services: the Contractor exam is 55 questions in a two-hour session, and you must score at least 70% (39 of 55) to pass. It is a computer-based test based on the 5th edition of the Contractors Guide to Business, Law and Project Management, covering the laws and regulations for operating a home-improvement business. The license period is two years. A passing score must be used to apply within two years or it expires; a failed candidate must wait 30 days to retake (60 days for any subsequent attempt).