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Requirements:
  • Pre-approval from the testing company (PSI) is required to sit for the examination.
  • For renovations preformed in pre-1978 housing for compensation you may need to have lead abatement accreditation and provide homeowners with lead information. Contact the EPA at epa.gov/lead and the Maryland Department of the Environment at www.mde.state.md.us .
  • A contractor or subcontractor holding a license under Maryland home improvement law is not required to hold a construction license issued by the Clerk or Circuit Court MarylandTaxes.com
  • New home builders must register with the Consumer Protection Division of the Office of the Attorney General Maryland Attorney General
  • Contractors must display their home improvement license number on all their home improvement contracts, trucks, and advertisements.
  • Licensees must notify the Executive Director of the Commission within 10 days of a change of address, trade name, or ownership of the business by certified mail return receipt requested.
  • Checks sent to the Commission with applications go directly to a bank due to auditing requirements. A cancelled check is not proof of licensure. Only the hard copy of the actual license is proof of licensure.

    Any applicant who has had a conviction of a misdemeanor relating to a home improvement transaction or felony must provide the Commission with copies of conviction records.

  • All applicants must take and pass the licensing exam before applying for a license with the Maryland Home Improvement Commission.

    There are 3 license categories under Home Improvement. They are:

  • Contractor
  • Subcontractor – may not enter into contracts with homeowners, may only for a licensed contractor.
  • Salesperson – may only be licensed to represent 2 licensed contractors in the selling of home improvements.

    License Requirements for Home Improvement Contractor:

  • Applicant for a Maryland Home Improvement contractor’s license must provide proof of 2 years of work experience in home improvement work, construction, and/or related education.
  • Applicants must provide proof of financial solvency based on the scope and size of their business in relation to total assets, liabilities, credit rating, and net worth. An applicant that submits a surety bond to meet the financial solvency requirement must submit a bond in the amount of $20,000.
  • If a contractor is representing a corporation, articles of incorporation and a certificate of good standing from the Department of Assessments and Taxation must be submitted (www.dat.state.md.us).
  • A contractor using a trade name must first check with the Commission to make sure the name is available for use with the Commission and then register the name with the Department of Assessments and Taxation. A certificate of trade name registration must be submitted with the license application.
  • Proof of current $50,000 liability insurance must be filed with the application for original licensure and at renewal. Contractors must give the Commission notice of cancellation of liability insurance at least 10 days before the effective date of the cancellation.
    *There is no statewide testing for Commercial and Residential Builders in the State of Maryland.

     

    To work as a Commercial Contractor you must register with the city/county in which the company resides. It is advisable to pass the Maryland Home Improvement exam then acquire the registration from your city/county. This will allow you to work throughout the state. Also, to work as a Maryland Residential Builder you must register with the State Attorney General’s Office, you will have to show proof of liability insurance and pay $300 in fees.

    *The Home Improvement Commission has a Guaranty Fund established by assessments to contractors. The Fund compensates homeowners for actual monetary losses due to poor workmanship or failure to perform a home improvement contract for work done only by licensed contractors. Each licensed contractor is covered by the Fund for up to $100,000 for all claims.

Scope of Work:

The Maryland Home Improvement license allows the licensee to alter, remodel, repair, or replace a building or part of a building used as a residence. Home Improvement also includes work done on individual condominium units. It does not include work done on apartment buildings that contain 4 or more single family units or work done on commonly owned areas of condominiums.

Applications:

To apply, contact the the testing agency, PSI. (800)733-9267 or www.psiexams.com

The average processing time on applications is 8 weeks.

The original license fee for an active Home Improvement contractor is $325. The renewal fee for an active Home Improvement license is $304.61.

The original license fee for an active Subcontractor license is $125. The renewal fee for a Subcontractor with an active license is $125.

The original license fee for an active Sales license is $75. The renewal fee for a Sales license that is active is $75.

  • For license issued prior to July 1, 1999 each licensee was issued a personal renewal date from which the license must be renewed every 2 years.

    For licenses issued after July 1, 1999 the license period is 2 years from the date of issuance of the original license. The Home Improvement Commission meets the 1st Thursday of each month.

 

  • There is a $50 fee to place a license on inactive status. Persons holding an inactive license cannot enter into home improvement contracts or perform any home improvement work.
  • The fee for an original inactive Home Improvement license is $162.50. The renewal fee for an inactive Home Improvement license is $112.50
  • The fee for an original inactive Subcontractors license is $112.50. The renewal fee for an inactive Subcontractors license is $62.50.
  • The fee for an original inactive Sales license is $87.50. The renewal fee for an inactive Sales license is $37.50.
  • To change from an inactive status to active status there is a $10 reactivation fee for all licenses.

Contractors must also submit a credit report, proof of liability insurance and $75 for the Guaranty Fund renewal assessment.

Reciprocity:

Maryland has no reciprocal agreement with any other states for this license.

Continuing 
Education:

As of this time, there is no continuing education for this license.

Exam:
  • The fee for the exam is $63 and 70% is required to pass.
  • The Maryland Home Improvement contractor exam has 55 questions and a time limit of 2.5 hours.
  • The Maryland Subcontractor exam has 35 questions and a 1.5 hour time limit.
  • The Maryland Sales exam has 35 questions and a 1.5 hour time limit.

    Topics covered on the Home Improvement exam include home improvement law, door-to-door sales act, labor laws, safety regulations, payroll taxes, business and financial, and estimating.

    Topics covered on the Subcontractor exam include home improvement law, labor laws, safety regulations, payroll taxes, business and financial, and estimating.

    Topics covered on the Sales exam are home improvement law and door-to-door sales act.

  • Upon successful completion of the exam, license applications will be sent to the applicant by the testing company.
  • To schedule your exam, you must first obtain pre-approval from the board. Then, contact PSI at 1-800-733-9267.
References:

The references listed in the Right-Hand column are permitted to be taken into the examination. These references may be tabbed (with permanent index tabs) and highlighted. They are available for purchase from our online contractor’s bookstore or by calling our office at 1-800-992-1910.

Training:
American Contractors offers a 1 day seminar to prepare for the Maryland Home Improvement contractor license exam. We do not offer a seminar for the Subcontractor or Sales license exam. Please contact us for additional information, 1-800-992-1910.
  Seminar Price: $445.00  
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Schedule Info:
Upcoming classes
LocationSeminar Date
Elkridge, MD3/12/2019
Elkridge, MD6/18/2019
Elkridge, MD9/17/2019
Elkridge, MD12/3/2019

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Reference Materials
The following books are recommended for this exam:
BookNameOnline Price
$64.00
$10.95

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