The Indiana Home Improvement Contract Act (HICA)

Indiana Consumers who deal with contractors to repair and improve their homes have a friend in Indiana’s Home Improvement Contract Act (“HICA”). This consumer protection statute is specifically designed to force contractors who deal with homeowners to play fair. The HICA statute requires all contractors doing business with consumers within the state of Indiana to provide written contracts containing prescribed information. HICA seeks to empower consumers by forcing contractors to provide such basic information as accurate contact information, start and finish dates, total project cost, and details describing the work, just to name a few. The following information describes some of the more salient details of the HICA legislation.

WHAT DOES THE ACT REQUIRE?
The following list is a brief sampling of some of the more basic requirements of HICA.
Each Indiana home improvement contract must contain at a minimum:
Name and address of the consumer;
Address where home improvement is to be performed;
Name, address, telephone number, and e-mail address of home improvement supplier;
Name of the supplier’s representative and telephone number where problems can be reported;
The date upon which the home improvement contract was submitted to consumer;
The date the home improvement contract offer will expire, if not accepted (if any);
The approximate start and completion dates, along with a list of any contingencies which might alter those dates;
A reasonably detailed description of work the home improvement suppliers will provide;
The complete cost of the home improvement project, including terms of payment;
A statement that the real property home improvement supplier shall not assert any insurance claim on behalf of the consumer;
It must provide the name, and address of any subcontractors or materialmen employed to work on the project;
Signature lines for the consumer and the home improvement supplier.

It is also important to note that no change order may be enforced by the home improvement supplier, unless it is in writing and signed by both the consumer and the home improvement supplier.

SPECIAL PROVISIONS APPLY WHEN THIRD PARTY PAYOR IS INVOLVED.
If a third-party payer, such as an insurance company, is expected to pay all or part of the contract price, the following provisions must be written into the contract in addition to those outlined above:
Where a consumer signs a contract that does not specify the price or scope of the work, then no work can commence before the consumer signs a separate written authorization containing a detailed description of the work and the price that will be paid. The contractor may also satisfy the statute by substituting a statement promising to restore the property to the same or better condition that it was in prior to the casualty loss.
Where an insurance claim must be approved before the commencement of the work, start and completion dates may be expressed by the amount of time from the date the insurance carrier approves the scope of work and cost.

IMPORTANT: HICA requires the home improvement supplier’s agent to sign the contract agreeing to all terms expressed in the agreement BEFORE submitting it to the consumer for signature and approval.

PENALTIES FOR VIOLATING THE ACT:
Any real property improvement supplier who violates this act has committed a deceptive act. The supplier may be sued by the consumer or sanctioned in an action by the Indiana Attorney General. The penalties for committing a deceptive act include:

1. Injunctive relief;
2. Rescission of contract requiring money received by the supplier to be returned to Consumer;
3. Voiding the contract or certain provisions within it;
4. Payment of costs incurred by the Attorney General resulting from its investigation and
prosecution;
5. Court appointment of a receiver to seize control and operation of the suppliers business;
6. Fines;
7. Cost of actual damages plus recovery of your attorney fees.

WHAT TO DO IF YOU ARE IN A DISPUTE WITH YOUR CONTRACTOR:
Contractors are in the business of contracting. They prepare and sign contracts every day. They have knowledge most consumers don’t have, and often have lawyers helping them draft these contracts. If you are in a dispute with your contractor, chances are your salvation is in the Indiana Home Improvement Contract Act, but you will likely need an experienced construction attorney to help navigate through the many twists and turns of this complex area of consumer law.
If you are frustrated with your contractor and believe you are being taken advantage of, give us a call today at 317-939-3000 and ask your friends at IndyAdvocate.com what they can do to get you on the right track with your contractor.
For a telephone evaluation – call – 317-939-3000 or click here to send us an email.