Illinois Home Repair and Remodeling Act: What Your Contract Must Say

Under the Illinois Home Repair and Remodeling Act, a contract for home repair work over $1,000 has to be in writing, signed, and specific about cost. If a contractor tells you a handshake and a text message are enough on a porch, a roof or a brick wall, they are not following the law that protects you. Here is what the Act says, what it leaves open, and what we would add.

This is a plain-language summary, not legal advice. For a contract dispute or a decision about your rights, talk to an attorney.

Does the Act cover your building?

The Act covers a "residence" of one to six units. That includes a Chicago bungalow, a two-flat, a three-flat and a six-flat. Repairs to a building with more than six units are outside the Act (815 ILCS 513/10).

"Home repair and remodeling" has a definition. It excludes maintenance, service or repairs under $500, and it excludes original construction. The listed examples include driveways, porches, chimneys, garages, fences, roofs and windows (815 ILCS 513/10). So a porch rebuild, a roof replacement or a window job on a two-flat is the kind of work the Act has in mind.

What the written contract must say

Before starting home repair or remodeling work over $1,000, the contractor must give you a written contract or work order to sign. The Act says it must state (815 ILCS 513/15):

• The total cost. That includes any charge for an estimate.
• Parts and materials, listed with "reasonable particularity." "Brick and mortar, as needed" is not that. A list of what goes in is.
• The business name and address. If the contractor uses a PO box or a mail service, the contract must also give a residence address.

Read the first bullet twice. A contract with a total and no materials list does not meet the standard the Act describes. A contract with a vague "approx." total does not tell you what you owe.

The consumer rights pamphlet and the signed form

For contracts over $1,000, the contractor must give you the pamphlet "Home Repair: Know Your Consumer Rights" before the contract is signed. You then sign a dated Consumer Rights Acknowledgment Form, in duplicate, and the contractor keeps the original (815 ILCS 513/20).

For work at $1,000 or under, the pamphlet still goes to the customer, but no signed acknowledgment is required (815 ILCS 513/20).

If a contractor puts a contract in front of you and has not mentioned the pamphlet, ask for it before you pick up the pen.

What insurance the Act expects

Persons in the home repair business must maintain public liability and property damage insurance of $100,000 per person and $300,000 per occurrence for bodily injury, and $50,000 per occurrence for property damage, unless their net worth is at least $1,000,000 (815 ILCS 513/25).

Do not take this on faith. Ask for a certificate of insurance before work starts, and read it. Our guide to what insurance a Chicago contractor should carry covers what to look for, including how the City's own license rules set insurance by contractor class.

What happens if the contractor breaks the Act

A person who suffers actual damage from a violation may sue under Section 10a of the Consumer Fraud and Deceptive Business Practices Act. The Attorney General or a State's Attorney may also sue to stop a pattern or practice of violations (815 ILCS 513/30 and 513/35).

That is the remedy the Act points to. How a claim would play out on your facts is an attorney's question.

What we would add to the contract

The Act sets a floor. A good contract for a Chicago building usually goes further. The items below are our practical recommendations for any contract, not extra legal requirements we are citing, so ask an attorney about anything that matters to you:

1. A clear scope. What is being repaired, replaced or left alone, written so a stranger could tell whether it was done.
2. A payment schedule tied to work completed. Our guide to contractor deposits explains how to think about it.
3. Who pulls the permit. Name the party and require the permit number before work starts. See who pulls the permit.
4. How changes are handled. If the scope changes, it changes in writing, with the effect on cost stated.
5. Start and finish expectations, and cleanup. Even loose ones beat silence.
6. What happens to the old material and who is responsible for the site.

Red flags at the contract stage

• The contractor will not put it in writing, or says the paperwork "comes later."
• No business name or address, or only a phone number.
• A total with no materials list.
• No pamphlet and no acknowledgment form on a job over $1,000.
• Pressure to sign today.

If you see any of these, slow down. Compare at least two written bids using our guide to comparing contractor estimates, and check the license first. Our hiring guide covers the whole process.

At Akats we put the scope, the materials and the City paperwork in writing, because a documented job is a job you can stand behind. Want a written estimate for your building? Reach our team through our contact page.

Common questions

This article explains general rules and common situations in Chicago. It is not legal advice, and City rules change. For a specific property, check with the Chicago Department of Buildings or a licensed professional.