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Types of Licensing You do not need a license to perform general contractor work in Maryland. The license is required by the state if you are doing home improvement projects or for plumbing, electrical systems, or HVAC work.
So, depending on materials, you may be looking at a range of a 10-30% deposit for a project that is more labour than material cost.
Homeowners also may perform certain plumbing work that requires a plumbing permit, subject to specific limitations. Generally, permits are not required for the replacement of existing plumbing fixtures, except for water heaters and testable backflow devices.
In Maryland, a contractor license is required if you wish to work on home improvement projects or do electrical, plumbing, or HVACR work. Below is a quick guide covering everything you need to know to become a licensed contractor in Maryland.
Asking for more than half of the project cost up front, though, is a big red flag. A reputable and established contractor should have the wherewithal to purchase enough materials to get the job started without relying on your down payment. I recommend tying payments to progress made during the job.
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A contractor cannot accept more than 1/3 of the contract price as a deposit, and may not accept any payment until the contract is signed. The agreed-upon price of the home improvement contract should be clearly stated. Beyond the initial deposit, the Home Improvement Law does not control the payment schedule.
From a practical standpoint, any subcontractor performing residential construction work in Maryland should have a MHIC license; however, if the subcontractors does not have one, it may not fully preclude them from obtaining payment from the general contractor.
In the state of Maryland, it is actually illegal for unlicensed contractors to perform work on homes. Thats right, hiring a unlicensed contractor is a crime.
Providing deposits for contractors is a crucialand normalstep in starting a renovation. Short answer: Yes. But there are exceptions, and your contractor may have some flexibility. Below, Sweeten outlines the reasons behind upfront payment amounts, and some options for negotiating your deposit for a contractor.
Types of Licensing You do not need a license to perform general contractor work in Maryland. The license is required by the state if you are doing home improvement projects or for plumbing, electrical systems, or HVAC work.

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