Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.
A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.
In Ohio, home improvement contractors are regulated at the state and local level. Ohio does not have a statewide licensing requirement for general contractors; however, local jurisdictions may have their own licensing requirements. Contractors must comply with these local regulations before undertaking any home improvement projects. The Ohio Consumer Sales Practices Act (OCSPA) provides guidelines that contractors must follow when entering into agreements with homeowners. Contracts for home improvement must be in writing and include a clear description of the work, materials, payment terms, timeline for completion, and insurance requirements. Ohio law also requires contractors to provide homeowners with a notice of their right to cancel the contract within three business days. Regarding mechanic's and materialmen's liens, Ohio Revised Code Chapter 1311 outlines the process for filing and enforcing these liens to ensure contractors and suppliers receive payment for their services and materials. It is advisable for homeowners to work with an attorney to understand their rights and obligations under a home improvement contract and to ensure that all legal requirements are met, including those related to liens.