Law Office Report - Fall 2008

Wisconsin's Home Improvement Code
Protection for Homeowners and
a Trap for Unwary Contractors

Attorney Richard H. Fuller

Wisconsin’s Home Improvement Code may not be well known to homeowners or contractors, however, each party involved in home improvement projects needs to be aware of the obligations, remedies, and pitfalls under this law. The Wisconsin Department of Agriculture, Trade and Consumer Protection administers Chapter ATCP 110 of Wisconsin’s Administrative Code. This code was created to protect homeowners against unfair trade practices by contractors who provide home improvement services. The code provisions apply to at least 15 different types of improvements to one’s residence, including remodeling, altering, repairing, painting, making additions to, construction, repair of sidewalks, driveways, patios, landscaping, fences, porches, garages, basements, heating and air conditioning equipment, and more. This code applies only to improvements to residential property, but does not apply to new construction.

Among other things, this code outlines when a written contract is required between a homeowner and a contractor. If required, a written contract must contain the following information:

  1. The contractor’s name and address;
  2. A detailed description of the work to be done and details of the principal products and materials to be used or installed in performance of the contract;
  3. The total price, including finance charges;
  4. The start and completion date;
  5. A description of any mortgage or security interest to be taken in connection
    with the financing or sale of the home improvement;
  6. A statement of any warranty;
  7. An identification of any other document that is incorporated into this contract; and
  8. The terms and conditions of any insurance coverage provided.

Additionally, before homeowners enter into the contract, the contractor shall determine if the homeowner is able to read and understand the contract. The contractor also shall inform the homeowner of all permits required and may not begin work unless all permits have been issued for the project.

If the contractor fails to satisfy any of these requirements, among others, the homeowner has several remedies at their disposal including:

  1. Cancellation of the contract;
  2. Double damages and actual attorney’s fees for pursuing claims against the contractor; and
  3. The homeowner may file a complaint with the Department of Agriculture, Trade and Consumer Protection.

The unwary contractor who fails to satisfy the highly-detailed requirements under ATCP 110 may also be exposed to criminal prosecution and civil forfeitures even if he or she is merely careless and inadvertently fails to comply with these requirements, such as forgetting to specify a start and completion date in the contract.

Probably most significant for contractors is the ability of a homeowner to get around the limited liability protection of a corporation or LLC and hold the contractor personally liable for violations of the Home Improvement Code. Therefore, it is prudent for both homeowners and contractors to discuss with legal counsel the ramifications of Wisconsin’s Home Improvement Code and how it may impact their rights, obligations, and potential liability.