Legislation Update - Construction

Home Builder Guaranty Fund

Revisions to the Home Builder Guaranty Fund, found here, raising the per registrant cap on awards from $300,00 to $500,00 passed and have been sent to the Governor.

General Contractor Liability for Subcontractors’ Wage Violations

As I previously wrote about here, Maryland enacted a law in 2018 that imposes liability on a general contractor for wage violations committed by its subcontractors.  The law permits the subcontractors’ employees to sue the general contractor and seek a host of damages (including attorneys’ fees and treble damages).  This year, a bill was introduced, found here, that would limit the joint and several liability of the general contractor to only those instances when the employee notified the general contractor in writing of the violation and the general contractor failed to cure the violation within thirty days. However, the bill received an unfavorable report in the House committee and was withdrawn in the Senate.

Home Improvement Contracts

A bill, found here, that would increase the maximum deposit a contractor could require under a home improvement contract – from one-third to one-half of the total job amount – stalled in committee.

Another bill, found here, affecting home improvement contractors – this one requiring additional consumer acknowledgements – received an unfavorable report in committee and was withdrawn.