Wisconsin Home Improvement Contracts: What Contractors Must Include

Starting a home improvement project in Wisconsin? Whether you’re a contractor or a homeowner, understanding the state’s contract requirements can save you from costly mistakes and legal troubles. Wisconsin’s Chapter ATCP 110 – HOME IMPROVEMENT PRACTICES sets clear rules that protect both parties in home improvement deals.

This guide breaks down everything you need to know about Wisconsin’s home improvement contract requirements in plain English. We’ll cover what must be in your contract, why lien waivers matter, permit requirements, and the serious penalties for breaking these rules.

When You Need a Written Contract

Not every home improvement job requires a written contract in Wisconsin, but most do. You must put your agreement in writing if:

• The homeowner pays any money before you finish the work
• You contacted the customer away from your regular business location (door-to-door, phone calls, mail, or flyers)

These rules exist because advance payments and off-site sales create higher risks for homeowners. A written contract protects everyone involved.

Essential Contract Information

Contractor Details

Your contract must include your complete business information:

• Your full name and business address
• The name and address of the sales representative who made the deal
• If someone else will act as the general contractor, their name and address must be disclosed

This transparency helps homeowners know exactly who they’re working with and who’s responsible for the project.

Project Description

You need to clearly describe the work you’ll perform. This includes:

• Detailed description of all work to be done
• Principal products and materials you’ll use or install
• For major items: name, make, size, capacity, model, and model year
• Type, grade, quality, size, or quantity of building materials
• Specific products or materials if you made representations about certain brands or types

The more specific you are, the better. Vague descriptions lead to disputes and unhappy customers.

Pricing and Payment Terms

Your contract must clearly state:

• The total price the buyer will pay, including all finance charges
• For time-and-materials contracts: the hourly labor rate and all terms affecting price
• Any mortgage or security interest you’ll take for financing
• Payment schedule if you require partial payments

Hidden costs are prohibited. You must disclose all charges upfront, including financing charges, permit fees, and installation costs.

Timeline Requirements

Include specific dates for:

• When work will begin
• When work will be completed
• If you need to change these dates, you must notify the homeowner in writing and get their written agreement

Clear timelines prevent misunderstandings and give homeowners realistic expectations.

Warranty Information

You must include details about any warranties you provide:

• What the warranty covers
• How long it lasts
• Any conditions or exclusions
• How quickly you’ll respond to warranty claims
• When you’ll provide manufacturer warranties (at contract signing, installation, or project completion)

Don’t make warranty promises you can’t keep. The law prohibits giving warranties you don’t intend to honor.

The Critical Importance of Lien Waivers

Lien waivers might be the most important protection for Wisconsin homeowners, yet many don’t understand them. Here’s what you need to know:

Required Notice to Buyers

Before signing any contract, you must give homeowners this exact written notice:

Notice of Consumer’s Right to Receive Lien Waivers

If a consumer requests lien waivers, a seller of home improvement services must provide lien waivers from all contractors, subcontractors, and material suppliers. This Wisconsin law protects consumers from having liens filed against their property. Lien waivers prevent the filing of a lien on your home in the event that a contractor does not pay suppliers or subcontractors.

For more information about home improvement law, contact the Wisconsin Consumer Protection Bureau at 1-800-422-7128 or www.datcp.wi.gov.

This notice must be:

• On a separate document
• Written in clear, large font
• In a format the homeowner can keep
• Acknowledged by the homeowner (keep proof they received it)

Providing Lien Waivers

When homeowners request lien waivers, you must provide written waivers from:

• All contractors and subcontractors
• All material suppliers
• For the proportionate value of work completed at the time of payment

Unless the homeowner specifies the request applies only to final payment, you must provide waivers with every partial payment too.

Why This Matters

Without proper lien waivers, homeowners could pay you in full but still face liens on their property if you don’t pay your suppliers or subcontractors. This double payment scenario destroys trust and creates legal nightmares.

Understanding how mechanic’s liens attorneys can help protect both contractors and property owners is essential for avoiding these complications.

Building Permits and Inspections

Wisconsin requires strict compliance with permit and inspection requirements:

Permit Requirements

• Inform buyers of all required permits before signing the contract
• Don’t start work until all required permits are issued
• For projects with multiple phases, get permits for each phase before starting that work

Inspection Requirements

When state or local laws require inspections:

• Provide copies of inspection certificates to the buyer when construction is complete
• Do this before requesting final payment or asking the buyer to sign completion documents
• If inspectors don’t issue certificates, provide a written summary with the inspector’s name, inspection date, and identification number

These rules ensure your work meets safety standards and local codes.

Prohibited Practices

Wisconsin law specifically forbids many common problems in the home improvement industry:

False Representations

You cannot:

• Claim to offer “model home” discounts or use similar misleading incentives
• Misrepresent your products’ features, quality, or performance
• Falsely claim to be licensed, bonded, or insured
• Lie about your business relationships or authority

Bait and Switch

You cannot:

• Advertise products you don’t intend to sell at the advertised price
• Discourage buyers from purchasing advertised products to sell more expensive alternatives
• Refuse to show or sell advertised products
• Falsely claim products are unavailable

Financial Misrepresentation

You cannot:

• Misuse customer prepayments for purposes other than their project
• Encourage customers to inflate their financial information for loans
• Hide financing charges or other costs
• Misrepresent payment obligations

Serious Penalties for Violations

Wisconsin doesn’t take contract violations lightly. The penalties are severe and designed to protect consumers:

Civil Lawsuits

Customers who suffer monetary losses can sue you directly under Wisconsin Statute 100.20(5). They can recover:

• Double damages: Twice the amount of their actual loss
• Attorney fees: You may have to pay their legal costs
• Court costs: Additional financial burden

Criminal Prosecution

The state can prosecute violations under Wisconsin Statutes 100.20(6), 100.26(3), or 100.26(6). Criminal penalties can include fines and potential jail time.

Administrative Penalties

The Wisconsin Department of Agriculture, Trade and Consumer Protection can impose additional penalties and sanctions.

Real-World Impact

These aren’t empty threats. Wisconsin actively enforces these laws. A contractor who fails to provide proper contracts, lien waivers, or warranties could face:

• Lawsuits from multiple customers
• Thousands of dollars in double damages
• Legal fees that exceed the original contract value
• Criminal charges that affect their business license
• Reputation damage that destroys their business

If you’re facing contract disputes or regulatory issues, experienced construction law attorneys can help protect your business and navigate complex compliance requirements.

Special Rules for Basement Waterproofing

If you provide basement waterproofing services, additional strict rules apply:

Required Analysis

You must provide a written analysis of:

• Causes and conditions creating the water problem
• Specific processes and materials you’ll use to fix it

Guarantee Requirements

Any guarantee must:

• Be provided in writing before contract signing
• Clearly state what you’ll fix and for how long
• Include a provision to begin remedial work within 45 days of notification
• Complete remedial work within 6 months

Special Disclosure

If you don’t guarantee your basement waterproofing work, you must include this exact statement on your contract in bold type:

THE BASEMENT WATERPROOFING SERVICES PROVIDED BY THIS CONTRACT ARE NOT GUARANTEED.

Contract Changes and Substitutions

You cannot change materials or products without the buyer’s consent:

Written Changes Required

For written contracts, any changes must be in writing except for verbal changes that:

• Don’t cost the buyer extra money
• Don’t reduce the value of materials or services
• Are properly documented with the buyer’s name, date, time, and description of the change
• Are reported to the buyer before final payment

Documentation Requirements

Keep detailed records of any authorized changes, including how the buyer communicated approval and when it occurred.

Best Practices for Compliance

Create Template Contracts

Develop standardized contract templates that include all required elements. This ensures you never miss important details and speeds up your sales process.

Professional construction contract review services can help you develop compliant templates that meet Wisconsin’s specific requirements.

Train Your Sales Team

Make sure everyone who sells for your company understands these requirements. One uninformed salesperson can create expensive legal problems.

Use Checklists

Create checklists for:

• Required contract elements
• Permit requirements
• Inspection schedules
• Lien waiver procedures

Keep Detailed Records

Document everything:

• Customer communications
• Change orders
• Payment schedules
• Inspection results
• Warranty claims

Regular Legal Updates

Laws change. Review your contracts and procedures annually with a lawyer familiar with Wisconsin construction law.

Protecting Your Business and Your Customers

Wisconsin’s home improvement contract requirements might seem overwhelming, but they protect your business as much as your customers. Proper contracts:

• Reduce misunderstandings and disputes
• Provide legal protection if problems arise
• Build customer confidence and trust
• Demonstrate your professionalism
• Help you get paid on time

The penalties for violations are severe because these protections matter. Homeowners invest significant money in improvement projects, often borrowing against their homes’ equity. They deserve clear contracts, honest representation, and professional service.

Take Action Today

Don’t wait for a problem to review your contracts and procedures. The cost of compliance is minimal compared to the potential penalties for violations. Whether you’re a contractor or homeowner, understanding these rules protects your investment and ensures successful projects.

If you’re a contractor, review your current contracts against these requirements. If you’re a homeowner, use this information to evaluate contractors and protect yourself from problems. Or contact us online for a free consultation.

Remember: Wisconsin’s Department of Agriculture, Trade and Consumer Protection is available at 1-800-422-7128 or www.datcp.wi.gov for additional information and assistance.

Professional home improvement projects benefit everyone when they’re done right. Wisconsin’s clear rules make that possible – but only if you follow them.