In an effort to protect consumers, in 1987 the Indiana legislature passed the Indiana Home Improvement Contracts Act. The Act places very specific minimum requirements on the terms of every home improvement contract for a price over $150.00.
Among other requirements, a home improvement contract must be in writing and must contain the following, in plain-English:
- The name of the consumer and the address of the property to be improved.
- The name and address of the home improvement supplier and each of the telephone numbers and names of the person or persons to whom problems and inquiries can be directed.
- The date the contract was submitted to the consumer and any time limitation on the consumer’s acceptance of the contract.
- A reasonably detailed description of the proposed improvements.
- If the description of the proposed improvements does not include specifications, a statement that the specifications will be provided to the consumer before commencing any work and that the contract is subject to the consumer’s separate written and dated approval of the specifications.
- The approximate starting and completion dates of the improvements.
- A statement of any contingencies that would change the completion date.
- The contract price.
- Signature lines for the home improvement supplier or the supplier’s agent and for each consumer who is a party to the contract with a legible printed or a typed version of that person’s name placed directly after or below the signature.
- The dates the supplier and each consumer executed the contract.
Once executed, the contract can only be modified in writing.
The home improvement supplier must give a fully executed copy of the contract to the consumer immediately after the consumer signs it.
Keep in mind that these strict requirements apply regardless of the skill and workmanship of the job performed.
What results if the home improvement supplier fails to satify any of these requirements? On a bad day, the supplier can be held liable for the actual damages suffered by the consumer plus 3-times the actual damages resulting to the consumer due to the violation plus the consumer’s reasonable attorneys’ fees incurred. These enhanced damages are available to the consumer because a violation of the Act is treated as a “deceptive act” under Indiana’s Deceptive Consumer Sales Law.
Any home improvement contractor or supplier should routinely examine its contracts and procedures to make certain it strictly complies with the requirements of the Indiana Home Improvement Contracts Act. Failure to carefully adhere to this law can result in damages that easily exceed the value of the job performed.
Tags: deceptive act, home improvement contracts, property damages