Intro

If you work as a contractor in Maryland, you juggle jobs and paperwork. MHIC licensing, permits, inspections, and payments can slow you down. This guide breaks it into simple steps. You’ll see what a contractor Maryland must handle to stay legal, win trust, and get paid on time. We cover licensing, permits, contracts, deposits, change orders, and lien basics. Use these tips on your next job.

Quick Answer

A contractor Maryland needs an MHIC license for most home improvement work, clear contracts with the 1/3 deposit cap, the 3‑day cancel notice, and visible license numbers. Pull the right permits, schedule inspections early, and invoice on milestones. Write every change order and get it signed before work.

Table of Contents

• Contractor Maryland Licensing Basics
• Steps To Get Your MHIC License
• Permits And Inspections In Maryland Counties
• Contractor Maryland Contracts And Payments
• Getting Paid And Lien Basics
• Insurance, Safety, And Compliance
• Seasonal And Local Tips
• Tools And Templates To Save Time

Key Takeaways

• MHIC license covers most residential improvements; renew about every 2 years.
• Deposit cap: take no more than one‑third up front on home improvement jobs.
• Plan reviews often take 5–20 business days; schedule inspections 24–48 hours ahead.
• Use written, signed change orders; aim for approvals within 1–2 days.
• Invoice on milestones; send reminders at 7 and 14 days to stay cash‑positive.

Contractor Maryland Licensing Basics

If you’re a contractor Maryland working on existing homes, you likely need an MHIC (Maryland Home Improvement Commission) license. This covers remodeling, repairs, decks, roofs, windows, kitchens, and similar work. New home construction and most commercial jobs are licensed differently.

Key points:

• Put your MHIC license number on contracts, ads, trucks, and business cards.
• Keep your license active; renew roughly every 2 years.
• Salespeople who sign home improvement contracts may need an MHIC salesperson license.
• Expect basic checks: exam, financial responsibility, and insurance.

Most contractors find the MHIC path straightforward when they plan it like a small project. Book the exam, prep, file, and follow up.

Steps To Get Your MHIC License

1. Confirm You Need It: If you touch residential improvements, you generally do. Subs working only for GCs may be different, but check your role.
2. Choose Your Business Setup: Sole prop, LLC, or corporation. Register with the state.
3. Study And Schedule The MHIC Exam: Focus on law, contracts, safety, and business basics. Give yourself 2–3 weeks of prep.
4. Gather Documents: ID, business info, financial responsibility proof, and liability insurance meeting MHIC minimums.
5. Apply And Pay Fees: Submit a complete, clean application to avoid delays.
6. Pass Background And Review: Respond fast if the commission asks for more info.
7. Maintain Compliance: Renew on time every 2 years and keep records tidy.

Tip: Keep a folder with your license, insurance, W‑9, and COI. Many HOAs and GCs will ask for it within 24 hours.

Permits And Inspections In Maryland Counties

Permit rules vary across counties like Montgomery, Prince George’s, Anne Arundel, Howard, and Baltimore City. But the flow is similar.

What to expect:

• Plan Review: Simple decks and small interior jobs often clear in 5–10 business days. Larger additions may take 15–30 business days. Timelines vary by workload.
• Triggers: Structural changes, electrical, plumbing, and additions typically need permits. Sheds or decks over certain sizes (often 120–200 sq ft) can trigger more reviews.
• Inspections: Count on 2–4 inspections for many jobs (footing, rough‑in, framing, final). Book 24–48 hours ahead when possible.
• Frost Depth: Footings commonly go near 30 inches to reach below frost in much of Maryland. Check your county detail.
• Posting: Keep the permit visible on site from day one.

On most jobs, a contractor Maryland saves time by submitting complete packages: plans, site sketch, product specs, and HOA approval if needed. Missing pages can add 7–10 days fast.

Contractor Maryland Contracts And Payments

Your contract protects you and the homeowner. Maryland has clear rules for home improvement contracts.

Must‑haves:

• MHIC License Number: Put it front and center.
• Scope, Materials, And Price: Be exact. List model numbers when you can.
• Dates: Estimated start and finish. Add how delays are handled.
• Deposit Cap: Maryland caps home improvement deposits at one‑third of the contract price.
• Right To Cancel: Include the 3 business day cancellation notice in the contract.
• Change Orders: Put every change in writing, with price and time impact, signed before work.

Practical flow:

1. Send a clear proposal within 24 hours of the site visit.
2. Aim for a 30/40/30 payment schedule or similar milestone plan.
3. Price change orders the same day; target approval within 1–2 days.

You can speed this up using tools like Donizo. Capture details with Voice to Proposal on site, send a branded PDF, and get e‑signatures in hours, not days. That keeps your crew moving.

Getting Paid And Lien Basics

Cash flow keeps you alive. A contractor Maryland should set a simple rhythm.

• Invoices: Send at milestone completion (day 0). Add photo proof.
• Reminders: Nudge at day 7 and day 14. Be polite but direct.
• Overdue: At 30–45 days late, send a formal demand and consider a notice of intent to lien. Maryland mechanic’s lien rules are specific—deadlines depend on your role and project type. Talk with a construction attorney for exact steps.
• Records: Keep signed contracts, change orders, and payment logs for 3–7 years.
• Sales Tax: Maryland’s sales tax is 6%. Contractors usually pay tax on materials and build it into pricing. Check your accountant for your setup.

Most contractors report that tight paperwork cuts payment delays by half. Clear terms, photos, and signatures reduce back‑and‑forth.

Insurance, Safety, And Compliance

Stay covered and safe.

• Insurance: Carry general liability and, if you have employees, workers’ comp. Many clients ask for a COI within 1 business day.
• Safety: Follow OSHA 1926 basics—ladders, PPE, fall protection, and silica rules.
• Lead‑Safe: Pre‑1978 homes may need EPA RRP practices. Train your crew.
• HOAs: Many HOAs want approval and a COI listing them as certificate holder.

A contractor Maryland who shows up with insurance and safety plans wins trust fast.

Seasonal And Local Tips

• Winter: Concrete cures slower. Add a day or two to your timeline when it’s cold.
• Spring: Permitting lines get long. Submit 2–3 weeks earlier than usual.
• Coastal And Bay Areas: Expect higher wind load requirements and corrosion concerns. Choose hardware accordingly.
• Historic Districts: Allow extra review time and photo documentation.

Build small buffers. A 5–10% time cushion keeps you on schedule when the weather turns.

Tools And Templates To Save Time

Standardize the boring stuff so you can focus on the work.

• Proposal Templates: Reuse line items and unit prices. This pairs well with understanding professional proposals (link this phrase internally).
• Change Order Form: One page. Scope, price, days added, signature.
• Payment Email Cadence: Day 0, 7, 14. Attach photos and the signed page.
• Job Checklists: Rough‑in, pre‑final, and punch. Helps pass inspections first try.

Platforms such as Donizo help here: Voice to Proposal on site, quick Send Proposal, E‑signature Integration, and one‑click Invoice Management after acceptance. Many contractors find this saves 1–2 hours per job.

FAQ

Do I need an MHIC license for small jobs under $500?

If it’s a home improvement on an existing residence, you generally need an MHIC license, no matter the size. New home construction and many commercial jobs follow different rules. When in doubt, check with MHIC before you bid.

How much can I take as a deposit in Maryland?

Maryland caps the home improvement deposit at one‑third of the contract price. You can request more for special‑order materials if allowed in writing, but stick to the law and document everything.

How long does it take to get an MHIC license?

Commonly 4–8 weeks, depending on exam schedules, background checks, and how complete your application is. Submit clean documents and respond to any MHIC questions within 1–2 business days to keep it moving.

Can a subcontractor work under a GC’s MHIC license?

If you contract directly with the homeowner for home improvement work, you generally need your own MHIC license. If you only work for a licensed GC, MHIC may not require you to be licensed as a contractor, but your trade licenses still apply. Confirm your exact role.

What must be in a Maryland home improvement contract?

Include your MHIC number, scope, materials, total price, deposit (max one‑third), payment schedule, estimated dates, the 3‑day cancellation notice, warranties, and signatures. Attach any drawings or specs. Put every change in a signed change order.

Conclusion

Being a contractor Maryland is simple when you follow a clear checklist: get licensed, pull permits, write clean contracts, cap deposits at one‑third, and invoice on milestones. Put every change in writing and sign it before work.

Next steps:

• Add your MHIC number to every proposal and contract today.
• Build a 0/7/14 invoice reminder cadence for steady cash flow.
• Create a one‑page change order template and use it on every job.

If you want to speed up proposals and signatures, tools like Donizo make it easy. Keep your process tight, and your jobs will run smoother from bid to final check.