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MARLAND HOME IMPROVEMENT TEST QUESTIONS AND CORRECT
ANSWERS 2025/2026 LATEST EXAM//GRADED A+
Define home improvement - ANSWER-The addition, alteration, conversion, improvement, modernization, remodeling, repair or replacement of a building or part of a building that is used or was designed to be used as a residence or dwelling place or structure adjacent to that building or an improvement to land adjacent to that building Is a building of a swimming pool, deck, pier or porch included in Home Improvement? - ANSWER-Yes Is work done on apartment complexes of more than 4 units considered home improvement? - ANSWER- No Is work done on individual condominium units considered home improvement? - ANSWER-Yes Is installation in a residence of alarm, awning or fire alarm considered home improvement? - ANSWER- Yes Is now removal or grass cutting home improvement? - ANSWER-No Define contractor - ANSWER-A person who performs or offers or agrees to perform a home improvement for an owner Define Subcontractor - ANSWER-A subcontractor enters into contracts with contractors or other subcontractors to perform home improvement. A subcontractor is not authorized to enter into agreement directly with the owner Define salesperson - ANSWER-A person who sells a home improvement Define Home Improvement contract - ANSWER-An agrement between a homeowner and a contractor to perform a home improvement. The law requires contracts to be in writing and be signed by the parties to the agreement.
Define Owner - ANSWER-Owner, owner's agent , tenant or other person authorized to enter into a home improvement contract Define license - ANSWER-is either a contractor or salesperson license that is issued by the Home Improvement Commission. Does a handyman need a license? - ANSWER-Yes True or False: Home Improvement law does not apply if one of the parties is a government agency - ANSWER-True Work done a residence inside a military base is excluded from licensing requirements - ANSWER-True Can local jurisdictions issue home improvement lincenses - ANSWER-No, only MD Home Improvement Commission is authorized to issue a license to solicit, sell, or perform home improvement services in Maryland Can two or more individuals (such as homeowner and contractor) lawfully agree to ignore the Home Improvement licensing requirement? - ANSWER-No, waiver is prohibited When was the commission established? - ANSWER- 1962 How Many commissioners are there? - ANSWER- 9 (4 must have experience in the business of home improvement; 4 are members of the general public that represent cosumers; and 1 must have experience in banking and finance) What is the most important role of the Commissioners? - ANSWER-To promulgate regulations for the Commission. These regulations help the public better understand the Home Improvement Law and the Commission's policies How often are the meetings? - ANSWER-bi-monthly. Meetings are open to the public.
What is the Home Improvement Guaranty Fund? - ANSWER-One of the Commissions most important function is to administer the Home Improvement Guaranty Fund. The fund compensates homeowners for the actual loss caused by the acts or omissions of a licensed contractor. True or False: Is a homeowner hires an unlicensed contractor he/she is eligible to collect money from the fund? - ANSWER-FALSE - if a homeowner hires an unlicensed contractor, the homeowner will NOT be eligible to collect money from the Fund. What is Actual Loss? - ANSWER-Actual Loss means the cost to correct or complete a home improvement that is inadequate, unworkmanlike or incomplete. How much can homeowners recover? - ANSWER-Homeowners may recover up to $20,000 per contract, though they are not eligible to recover more than the amount paid to the contractor against whom the claim is based. Certain costs like: legal fees, interest, consequential damages are not covered by the Fund. What is the max amount that can be awarded from the Guaranty Fund for the acts or omissions of a contractor? - ANSWER-$100, How is the Fund maintained? - ANSWER-$100 by each contractor at the time of applying for a license. The Commission may also assess each contractor a fee of $50 if the Fund falls below $250, How many days does the contractor have to respond to claims from a homeowner once it has been received by the commission? - ANSWER-Once the Commission receives a claim, it send a copy to the contractor who has 10 days to respond back to the Commission. Who is not eligible to collect from the Fund? - ANSWER-Spouse, relative, or employee of the contractor, or an officer of the corporation. Similarly, an owner may only receive compensation if she/he resides in the house where the work was performed or does not own more than 3 residences. What happens to the license of the contractor after a claim has been paid? - ANSWER-The licensed is suspended, unless the commission determines that contractor did not know the wrongful conduct or it could had not been avoided
What is required in a home Improvement contract? - ANSWER-Date Contractors name, address, and MHIC number Consumer Notice Dates Description of work Deposit and Payment information What is Consumer Notice? - ANSWER-It provides phone of the Commission and states that "each contractor and subcontractor must hold a current MHIC license and anyone can ask MHIC about a contractor" The contract also needs to inform homeowners of the following:
- Formal mediation disputes between homeowners and contractors are available through the Commission
- The Commission administers the Fund which can compensate owners for certain actual losses caused by acts or omissions of licensed contractors
- The homeowner may request that the contractor purchase a performance bond for additional protections against losses not covered by the Fund What is the maximum a contractor may ask for downpayment? - ANSWER-1/3 of the contract How long does a homeowner have to rescind a contract? - ANSWER- 3 days after signing, and notification must be in writing. Who can make changes to a home improvement contract? - ANSWER-Only the contractor is authorized to make changes for a homeowner. The commission recommends changes to be in writing. True or False: Before the performance of a home improvement coontract, the owner shall be given a copy of the home improvement contract signed by the contractor - ANSWER-TRUE What is cancellation under Door to Door Sales Act - ANSWER-The Door to Door sales act gives consumers certain rights, including the right to cancel the contract without any penalty or obligation, by
What are the provisions for advertising under home improvement law? - ANSWER-1) Advertising must contain name, and MHIC license number regardless of whether the advertisement is in print, radio or TV.
- The advertisement cannot be false, deceptive or misleading For example: if advertisement contains a price which does not include all costs of items necessary for the proper function or appearance of the product, this must be clearly stated. Likewise, any limitation to what will be supplied at the advertised price shall be stated clearly next to the statement; if delivery or installation charges ar extra, the advertisement shall disclose the fact. Vehicles and MIHC - Where is the license number to be displayed? - ANSWER-both sides of all vehicles What is the penalty for acting as a contractor or salesperson without a license in MD? - ANSWER-guilty individuals may be incarcerated for 6 months and fined yup to $1000. For subsequent convictions 2 years in jail and up to $5000 fine. When was mold remediation act established? - ANSWER-MD Mold Remediation Act was established in 2008 to protect the public, improve indoor air quality, and to promote professional standards. What does the Mold remediation Act require? - ANSWER-Each company that provides mold remediation services must be licensed, and each employee who provides the service must be certified. What is mold? - ANSWER-Mold means an organism of the class fungi that causes disintegration of organic matter and produces spores, as well as the spores, hyphae,, and mycotoxins that are produced by mold. What is mold remediation? - ANSWER-Removal, cleaning, sanitizing, demolition, or other treatment of mold or mod contaminated matter that was not intended to be grown at that location. What is the insurance requirements for mold remediation? - ANSWER-GL in the amount of at leat $1,000, Is installing HVAC or AC system home improvement? - ANSWER-No
Lists exceptions to HI License - ANSWER-- Individual who works for a contractor or suib who is paid by salary and is not a salesperson
- A celrical employee, retail clerk, to a licensed contractor
- A solicitor for a contractor who calls an owner by phone only
- An architect, electriciam, plumber, HVAC contrator (who is reuired by state to meet standards of competency in their profession)
- a licensed secuity system tecitian under Title 18 of the Business Occupations Article
- A licensed Marine contracor under Title 17, Subtitle 3 The commission may issue a license to an applicant who has violated 8 - 601 if - ANSWER- 1 year has passed since the conviction What is term of license - ANSWER-unless a license is renewed for a 2 year term as provided in this section, the license expires:
- If the Sec staggers the term of the licenses, on the date that the Secretary set
- If the Sec does not stagger the licenses, on the first June 30 that comes after the effective date of the license in an odd number year How long does a licensee have to notify the Commission of change in business ownership or control - ANSWER-10 days How many people in a Hearing Board - ANSWER- 3 Decision of Hearing Board - ANSWER-Decision of the Hearing Board shall be:
- by majority of votes
- in writing
- submitted to the Commission Unless, within 15 days after the hearing board submitted its decision to the Commission, the Commission or a member of the Commission finds that a full hearing by the Commission is required: - ANSWER-- the decision of the Board is final
"Consumer goods" or "consumer services" mean - ANSWER-(1) good or services purchased, leased or rented primarily for personal, family or househol dpurposes; and (2) courses of instruction or training regardless of the purpose for which they are taken What does "Door to Door" sales mean - ANSWER-Door to door sales mean a sle, lease, or rental of consumer goods or consumer services under single or multiple contracts with a purchase price of $25 or more Check DOOR TO DOOR SALES - ANSWER-Pages 1 - 60 - 1 - 64 Ethic in Bidding - ANSWER-Good ethical conduct is necessary to maintain the integrity of the bidding process T or F - A good estimate will fall within 1 to 2 percent of actual construction costs - ANSWER-True Define Specifications - ANSWER-details that determine the type of materials or methods to be used in construction. if there is conflict between specs and applicable codes, you must follow the stricter of the 2 (The codes are the minimum requirements by law) Define contract - ANSWER-the agreement between you and owner Define bond - ANSWER-may be required as part of bid submittal (bid and performance bonds) Determine estimated costs using the QUANTITY TAKE OFF METHOD - ANSWER-After estimating materials and labor, the following are added:
- Subcontractor fees
- labor burden
- project overhead
- project equipment
- contingencies
- allowances
- company overhead
- profit What can help determine labor costs for each task? - ANSWER-Information from previous jobs can help accurate job costs What is used to determine labor burden - ANSWER-- Medicare and SS
- Fed unemployment
- Workers Comp
- Liability ins
- State unemployment ins
- company benefits (health ins , vacations, etc) Project equipment cost - Rented - ANSWER-Take into consideration:
- Equipment rental rate
- labor cost to pick up and return
- labor cost to operate
- other costs (fuel) Rent, lease or buy? What are the advantages of leasing? - ANSWER-- no down payment
- duration of payments over a long period making them lower
- lease payments are deductible
- obsolete equipment is returned to owner Contingencies - ANSWER-A contingency is sometimes added to an estimate to protect the contractor of anticipated problem or condition. For example - a low risk project may have 2% added
- Determine project equipment costs
- Add subcontractor fees
- Add allowances
- Add contingencies
- Add project overhead
- Add company overhead
- Add markup and determine profit Define conceptual estimate - ANSWER-Generally prepared by architects using costs models from previous projects. The contractor may arrive at a much different cost because of the projects unique characteristics Define square foot method of estimating - ANSWER-project cost is calculated by square footage multiplied by a unit costs What are fist steps to develop a cost code system? - ANSWER-Project number Activity classification code distribution code (Material M; Labor L; Equipment E; Project Overhead P) Some questions that could lead to legal action and are off limits when interviewing a potential employee
- ANSWER-- How old are you?
- Do you have an disabilities?
- Are you pregnant?
- Are you married?
- Do you have any children?
- What is your religious affiliation?
- What is your sexual orientation?
- What is your ethnic background? Questions should be ask in a job interview - ANSWER-- Ability to work in team
- ability to handle conflict
- expectations of job (salary, benefits, working hours, etc)
- past work history and reasons for leaving previous job
- level of expertise or skill
- training or education
- safety record
- questions about the job Reporting new hires to MD in how many days? - ANSWER- 20 Working hours for minor 16 - 17 are - ANSWER- 8 hrs of non school land non work time in each 24 hour period Prohibited tasks for minors - ANSWER-cleaning or adjusting of any power driven machine with exception of office machines T or F - All minors are prohibited from employment in occupations considered hazzrdous - ANSWER-True What are hazzardous tasks - ANSWER-Specific tasks outlined as hazardous or detrimental that apply to the construction industry (with the exception of apprentices as described by law) include but are not limited to:
- operating power driven machines such as woodworking machines, power driven circular saws, guillotine shears
- elevator or power driver hoisting apparatus
- metal forming punching or shearing machines
- driving any motor vehicle and being outside helper
- exposure to radioactive substances and ionizing radiations
- manufacturing brick, tile or related products
- roofing operations
- excavating operations
Define work week - ANSWER-a period of 168 hours during a seven consecutive 24 hour period What are employment practices that FLSA does not regulate? - ANSWER-- vacation, holiday, severance, or sick pay
- meal or rest periods, holidays off or vacations
- premium pay for weekend or holiday work
- pay raises or fringe benefits
- reason for discharge, immediate payment of final wages, or discharge notices What are rcord keeping requirements under FLSA? - ANSWER-The FLSA requires employees to keep records on wages, hours, and other items as specified in Dept of Labor record keeping regulation What are the employer eligibility provisions of the Immigration and Nationality Act? - ANSWER-The employer eligibility provisions of the Immigration and Nationality Act require employers to verify employee eligibility of all individuals hired. Form I- 9 must be kept on file for at least 3 years from the date of hire or 1 year after employment ends, whichever is later What are acceptable documents for I9 - ANSWER-US passport certificate of US citizenship certificate of naturalization permanent resident card unexpired foreign passport with stamp What is regulated by Americans with Disabilities Act (ADA)? - ANSWER-The law prohibits discriminating against persons with disabilities and applies to employers with 15 or more employees. In general the employment provisions of ADA require (1) equal opportunity in selecting, testing, and hiring qualified applicants with disabilities. (2) Job accommodations for applicants and workers with disabilities (3) and equal opportunities in promotion and benefits. Conditions covered under ADA - ANSWER-epilepsy paralysis
HIV
AIDS
Substantial hearing or visual impairment Mental retardation specific learning disability Name laws that protect rights of employees - ANSWER-- David Bacon (prevailing wage)
- Walsh-Healy Public contracts Act (min wage reg and ot contracts for federal government)
- Service-Contract Act (prevailing wage on contracts to provide services to the federal government)
- Wage Garnishment Law (limits the amount that can ve legally garnished and prohibits firing an employee whose pay is garnished for payment of a single debt)
- Family and Medical Leave Act ( Workers Comp requirements? - ANSWER-An employer who has one or more employees must carry workers comp insurance Unemployment requirements? - ANSWER-Program that provides unemployment benefits top eligible workers who become unemployed through no fault of their own. Required postings by law - ANSWER-See page 3 - 11 Basics to include in Company handbook - ANSWER-- Company history
- Compensation guidelines (introductory period, full time requirements etc)
- Payroll distribution dates and times
- Benefits
- Normal working hours
- Overtime pay
- Vacation time
- Sick days
- Policy on sexual harassment
does not increase the value of the property by 15%, then MD will not permit establishment of the mechanics lien. This does not apply to newly constructed building. Whats the deadline to file a lien? - ANSWER-No later than 180 days after last furnishing labor or materials What properties are subject to a lien? - ANSWER-Buildings Water,lines, sewers, drains, and street developments Machines, wharves and bridges Exemptions - the land of which the building is erected may not be subjected to a lien under this subtitles if prior to the establishment of the lien in accordance with this subtitle, legal title has been granted to a bona fide purchaser for value Filing of a petition constitutes notice to purchaser Notice to Owner by Sbcontractor - ANSWER-A subcontractor doing work or furnishing materials or both for or about a building other than a single family dwelling being erected on the owners land for his own residence is not entitled to a lien under this subtitle unless, within 120 days after doing work or furnishing the materials, the subcontractor gives written notice of an intention to claim a lien substantially in the form specified in subsection (b) of this section (See page 4-5) How to deliver a lien - ANSWER-Mail or personal delivery To file lien claim, time? - ANSWER-In order to establish a lien under this subtitle, a person entitled to lien shall filed proceedings in the court for the county where the land or any part of the land is located within 18- days after the work has been finished or the materials furnished. T or F - Is it the employers responsibility to understand the OSHA standards and quickly correct any violations? - ANSWER-True What is the advantage of establishing a safety program? - ANSWER-Putting together a safety program with these standards in mind can help maximize employee safety and prevent violations
List safety equipment - ANSWER-heard hats safety shoes/boots protective eye wear gloves fall protection hearing protection respirators protective coveralls face shields What is the requirement for EMERGENCY ACTION PLAN - ANSWER-If you have more than 10 employees, your plan must be in writing. if you have fewer than 10 you may communicate the plan orally to employees What does Emergency Action plan include - ANSWER-Reporting fire or other emergency Emergency evacuation Employees who remain for critical operations before evacuations Accounting for all employees after evacuation Employees performing rescue and medical duties ** The plan should also include the name and job title of the plan administrator OSHA Record keeping requirements - ANSWER-Every employer covered by OSHA who has more than 10 employees, except for employers in certain low hazard industries in the retail, finance, insurance, real estate and service sectors, must maintain 3 types of OSHA records:
- OSHA 300
- OSHA 300A
- OSHA 301
