Maine’s Home Construction Contract Act: What Homeowners & Contractors Need to Know
Introduction: Why Written Contracts Matter in Maine Construction
Maine is filled with homeowners tackling renovations and contractors taking on new builds. But when expectations don’t match reality, disputes can spiral quickly into litigation.
That’s exactly why the Maine Home Construction Contract Act (HCCA) exists. It sets clear rules for when a construction contract must be in writing, what terms it must include, and what happens when those requirements aren’t followed.
At Upstream Law, we see these disputes regularly — homeowners blindsided by unexpected costs, contractors accused of cutting corners, and families living with half-finished projects. This article unpacks the law, explains your rights, and shows how to prevent small misunderstandings from becoming big lawsuits.
The Legal Framework: 10 M.R.S. §§ 1486–1490
The HCCA applies to any construction or improvement to a home or residential property worth more than $3,000.
Key requirements:
Written Contract: Any job over $3,000 must have a written contract.
Signatures: Both the contractor and homeowner must sign.
Essential Terms: Contracts must include start/completion dates, description of work, payment schedule, warranties, and notice of consumer rights.
Change Orders: Any changes to scope, price, or timeline must also be in writing.
Failure to comply can leave contractors open to serious consequences — including loss of payment rights — and gives homeowners powerful remedies.
Why the Act Protects Both Sides
Many assume the HCCA only protects homeowners, but that’s not true. Contractors benefit too:
A clear written agreement reduces disputes.
Detailed payment terms protect cash flow.
Written change orders prevent misunderstandings when clients request “just one more thing.”
In short, compliance creates fairness and transparency for both sides.
Remedies for Non-Compliance
If a contractor violates the HCCA, homeowners may:
Void the contract and refuse payment.
Recover damages for defective or incomplete work.
Recover attorney’s fees if they prevail in litigation.
Courts have enforced these remedies strictly. For example, in Sweet v. Breivogel (2007 ME 139), the Maine Supreme Judicial Court emphasized that failure to follow HCCA requirements could bar a contractor from recovering payment.
For homeowners, this provides leverage. For contractors, it’s a warning: don’t cut corners on paperwork.
Common Mistakes by Contractors
Verbal Agreements: Relying on a handshake deal instead of a written contract.
Incomplete Contracts: Missing start/end dates, vague descriptions of work.
No Change Orders: Performing extra work without written approval.
Ignoring Warranty Provisions: Leaving homeowners unprotected.
Failure to Provide Consumer Rights Notice: Required under the Act.
Common Mistakes by Homeowners
Not Demanding a Written Contract: Agreeing to start work without one.
Paying Too Much Up Front: Large deposits create risk if the contractor disappears.
Not Verifying Licensing/Insurance: Essential for protection.
Not Documenting Changes: Allowing informal promises to control the project.
Failure to Keep Records: Weakens your position in disputes.
How Disputes Arise (and Escalate)
Most disputes start small: a delay in materials, an unexpected cost, a misunderstanding about what’s “included.” Without a written contract, both parties cling to their own version of the truth.
When trust breaks down, disputes escalate into:
Work stoppages
Mechanic’s liens (contractors filing against property)
Small claims or Superior Court lawsuits
Claims for damages and attorney’s fees
Alternatives to Litigation
Not every dispute belongs in a courtroom. Other options include:
Mediation: Neutral facilitator helps parties reach compromise.
Arbitration: Faster, binding resolution outside court (if contract allows).
Settlement: Negotiated payment adjustments, often cheaper than litigation.
At Upstream Law, we encourage early resolution when possible — but prepare to litigate if necessary.
How Homeowners Can Protect Themselves
Always insist on a written contract for jobs over $3,000.
Verify contractor credentials (check Maine Office of Professional and Occupational Regulation).
Take “before” photos of your property.
Get every change in writing.
Withhold final payment until work is complete and inspected.
How Contractors Can Protect Themselves
Use a compliant contract template for every job.
Train staff to prepare written change orders.
Document all communications with clients.
Keep proof of compliance in case of future dispute.
Consider adding arbitration clauses where appropriate.
Case Illustration (Generalized Example)
A Brunswick couple hired a contractor for a $40,000 addition. No written contract was signed. Midway through, costs ballooned, and the contractor demanded more money. The homeowners refused, and the project stalled.
In court, the contractor argued for payment. The judge held that because there was no written contract, the HCCA barred recovery. The homeowners not only avoided payment but also recovered legal fees.
Lesson: one missing contract can destroy a contractor’s case.
Quiet Confidence in Construction Litigation
Construction disputes can feel overwhelming — money at stake, unfinished homes, frayed relationships. At Upstream Law, our philosophy is quiet confidence: focusing on facts, contracts, and statutory protections. We don’t inflame tensions; we resolve them.
Conclusion
The Maine Home Construction Contract Act exists to prevent confusion and protect both homeowners and contractors. But when ignored, it creates some of the harshest penalties in Maine law.
Whether you’re planning a renovation, already in dispute, or a contractor trying to do things right, understanding the HCCA is essential.