Residential Construction Contracting in Indiana
Mike HoffmanMike HoffmanBeing a residential construction contractor in Indiana can be a tough job, in more than one way – not only from a physical perspective, but the legal paperwork often may feel arduous and unnecessary.
Having spent many years immersed in the contracting trades, with a focus on construction law, including contract compliance and disputes, let’s touch on a few things that a residential construction contractor must keep in mind when dealing with a homeowner consumer.
What many contractors fail to realize is that Indiana has promulgated a strict, sometimes onerous, set of requirements to which residential construction contractors must generally adhere when dealing with homeowners’ remodeling projects, that go beyond simply the common licensing and permitting regulations which are often imposed county-by-county.
A residential contractor, as a real property improvement supplier under Indiana Code §24-5-11-6 must abide by the statutory requirements of Indiana Code 24-5-11 et seq. – the Indiana Home Improvement Contract Act (“HICA”).
Many a well-intentioned contractor can get caught in the HICA “trap”, which most often gets brought to light upon an aggrieved homeowner’s pursuit of a remedy were a dispute between the contractor and the homeowner to arise pursuant to the work performed by the contractor.
Indiana’s HICA requirements are intentionally broad, as purposed to protect unwary homeowner consumers. HICA applies when a contractor performs any interior, or exterior improvements to a consumer’s home or property; therefore, a residential contractor of nearly any trade should be cognizant of HICA and should incorporate terms to effectuate HICA compliance in their construction agreements.
Damages stemming from HICA noncompliance can be considerable, far exceeding the profits of any certain underlying construction contract in many cases, resulting in potential treble (three-times) damages, along with potential liability for an aggrieved homeowner’s attorney’s fees. Each violation of HICA constitutes an actionable deceptive act under the Deceptive Consumer Sales Act (“DCSA”). Strict compliance with HICA is required in order for a contractor to avoid homeowner consumer claims of “deceptive act[s]” under the DCSA. While these claims may seems “technical” in nature, they can provide a homeowner with tools to control the outcome of a construction dispute that otherwise may not be as favorable to the homeowner.
Statutory requirements control warranty limitations, contract termination procedures and timelines, whether a contractor can provide subcontractor labor on projects, a contractor’s allowable interplay with a consumer’s insurance company, and much more, which all must be outlined sufficiently by the contractor within the residential construction contract. We would enjoy the opportunity to review your construction agreements and discuss any issues or concerns that may be present.
