An Act To Strengthen the Home Construction Contract Laws

Sec. 1. 10 MRSA §1487-A  is enacted to read:

§ 1487-A.  Bond

A contractor who enters into a contract under this chapter must post a bond of $10,000 to ensure compliance with this chapter.

Sec. 2. 10 MRSA §1490, sub-§3  is enacted to read:

Sec. 3. 10 MRSA §1490-A  is enacted to read:

§ 1490-A.  Resolution of disputes

Upon complaint from a party to a contract executed pursuant to this chapter, the Attorney General shall enforce the alternative dispute resolution terms agreed to by the parties pursuant to section 1487, subsection 8.

summary

This bill amends the laws relating to construction contracts by:

1. Directing the Attorney General to enforce the provision of the contract requiring the contractor to submit to dispute resolution;

2. Requiring a contractor that is subject to the construction contract provisions to post a $10,000 bond to ensure the contract's warranty provision; and

3. Requiring a judgment against a contractor for a violation of a contract to include court costs and reasonable attorney's fees.