Residential Home Improvement Contract Requirements in Georgia

When undertaking residential home improvement projects in Georgia, homeowners and contractors must adhere to specific legal requirements to ensure clarity, compliance, and protection for all parties involved. Below is an overview of the key legislative mandates governing these contracts.

1. Licensing Requirements

In Georgia, residential and general contractors are required to be licensed by the State Licensing Board for Residential and General Contractors. This mandate, effective from July 1, 2008, specifies that any contract for work requiring such a license is unenforceable if the contractor is unlicensed. Furthermore, unlicensed contractors are not entitled to file liens or bond claims for unpaid work. 

2. Written Warranty Requirement

For contracts involving the construction, supervision, or management of a single-family residence valued over $2,500, a written warranty is mandatory. This warranty must be provided before contract execution and should include:

• Detailed descriptions of covered work and exclusions.
• Standards for evaluating work, referencing the National Association of Home Builders’ Residential Construction Performance Guidelines.
• Warranty duration and commencement details.
• Procedures for claims and contractor response options.
• Information on assignable manufacturer warranties.

Failure to provide this warranty can result in penalties from the licensing board. 

3. Right to Repair Act

Under Georgia’s Right to Repair Act (O.C.G.A. § 8-2-35 et seq.), homeowners must follow a specific process before initiating litigation for construction defects. This includes:

• Serving a written notice to the contractor at least 90 days before filing a lawsuit.
• Providing details of the alleged defects and any supporting expert reports.
• Allowing the contractor 30 days to respond, either by inspecting the property or offering a settlement.
• If the contractor proposes repairs or compensation, the homeowner has 30 days to accept or reject the offer.
• Failure to adhere to these procedures may affect the homeowner’s ability to pursue legal action. 

4. Contractual Best Practices

To safeguard interests and ensure a smooth project execution contractors should ensure their contracts include:

• Contractor’s full name, address, and license number.
• Detailed scope of work and materials to be used.
• Start and completion dates.
• Total project cost and payment schedule.
• Warranties and financing arrangements.
• Provisions for lien waivers and insurance coverage.
• Clauses for dispute resolution, including arbitration options.

Additionally, homeowners have a three-day right to cancel contracts signed inside their homes for amounts over $25, excluding emergency repairs. The contractor must provide cancellation forms and refund payments within ten days if the contract is canceled. 

5. Record Keeping and Final Payment

Contractors should maintain comprehensive records, including contracts, change orders, invoices, and correspondence. Before accepting final payments, ensure:

• Completion of work as per contract terms.
• Necessary inspections and permits are obtained.
• All subcontractors and suppliers have been paid.
• Supply an affidavit of completion to the homeowner.

Need Legal Help? Contact a Contract Attorney in Georgia

Navigating residential home improvement projects in Georgia requires adherence to specific legal requirements to protect homeowners and contractors. By ensuring proper licensing, providing necessary warranties, following the Right to Repair Act procedures, and maintaining thorough documentation, parties can foster successful and compliant home improvement endeavors.