Wisconsin's ATCP 110 rule, administered by the Department of Agriculture, Trade and Consumer Protection, requires a written home improvement contract in common situations, including whenever you pay money before the seller finishes the work. The seller may not ask you to sign a completion slip or make final payment before the work is completed as the contract specifies.

If you prepay and the seller misses a deadline, you may cancel, demand the return of unspent payments, and demand a written accounting. A person who suffers a monetary loss because of a violation may sue under section 100.20(5) and may recover twice the amount of the loss, together with costs and reasonable attorneys' fees.

When must the contract be in writing, and what must it say?

ATCP 110.05 requires a written contract, including any later change in terms, in two situations: contracts that require any payment of money or other consideration by the buyer before the seller completes the seller's obligations, and contracts initiated by the seller through face-to-face solicitation away from the seller's regular place of business, mail or telephone solicitation, or handbills or circulars left at residences.

If a written contract is required, or if the buyer signs a written contract, it must be signed by all parties and must clearly, accurately, and legibly set forth the material terms, including:

• The name and address of the seller, and of the sales representative or agent who solicited or negotiated the contract
• A description of the work and the principal products and materials, including, where applicable, name, make, size, capacity, model, and model year, or the type, grade, quality, size, or quantity of principal building materials
• The total price, including finance charges, or, for time-and-materials work, the hourly labor rate and all other terms that affect price
• The dates or time period when work is to begin and be completed
• Any mortgage or security interest to be taken
• A statement of any guarantee or warranty, including warranties required under ATCP 110.04
• A description of any other document that is part of the contract

Before the seller begins work or receives any payment under a written contract, the seller must give the buyer a copy. If a language other than English is primarily used in negotiations, the written contract must be in English and in that language. If the buyer is blind or unable to read the contract, it must be read and explained by a third party the buyer designates who has no connection with the seller. Liquidated damages for a buyer's breach, if the contract includes them, may not exceed 10 percent of the contract price.

ATCP 110 applies to home improvement work on residential or non-commercial property, including remodeling, repairs, painting, additions, and many listed outdoor and indoor improvements. It does not include construction of a new residence or a major renovation of an existing structure, meaning a renovation or reconstruction contract whose total price is more than the assessed value of the existing structure at the time the contract is initiated.

Warranties must be given to the buyer in writing, including any oral warranty reduced to writing, generally when the contract is signed, with limited timing options for a manufacturer's product warranty. If a seller represents that the seller is licensed, bonded, or insured, the seller must give a written statement specifically describing the type of license, bond, or insurance.

What payment and cancellation rights apply if work is late?

ATCP 110.02(6)(e) prohibits the seller from requesting a completion slip or certificate, or final payment, before the home improvement is completed in accordance with the contract. That is the official no-final-payment-early rule. The chapter does not state a general one-third deposit cap, and this article does not invent one.

If the buyer pays for materials or services before the seller provides them, ATCP 110.07 lets the buyer cancel, demand return of payments the seller has not yet expended on the project, demand delivery to the site of unused materials purchased with the buyer's payments, and demand a written accounting that details how all payments were used. Those remedies apply if the seller misses a contract deadline, fails to give required notice of an impending delay or to obtain agreement to a new deadline, or, if the contract has no deadline, the buyer believes the seller has failed to perform in a timely manner.

The buyer exercises those remedies by written notice delivered in person, by certified mail, or by regular mail with evidence of mailing, to the seller's last known address. The seller must return unexpended payments within 15 calendar days after the demand is served, deliver unused materials within 15 calendar days or within 5 calendar days after the seller receives them from a supplier, whichever is later, and provide the written accounting within 30 calendar days. These remedies are in addition to other legal remedies.

DATCP publishes consumer tips on home improvement practices, and a complaint may be filed with DATCP. If the contract is a "consumer approval transaction" under chapter 423, ATCP 110.08 requires compliance with that chapter as well. Read the current chapter 423 rights that apply to your transaction, because they can add a separate cancellation path for certain deals.

FAQ

Do I always need a written home improvement contract in Wisconsin?

A written contract is required if you pay anything before the work is finished, or if the seller initiated the job through away-from-business solicitation, including phone, mail, or handbills. If you sign a written contract, it must include the terms listed in ATCP 110.05.

Can the contractor demand final payment before the job is done?

No. ATCP 110.02(6)(e) says the seller may not request a completion slip or final payment before the work is completed according to the contract.

What if I prepaid and the seller is late?

Under ATCP 110.07 you may cancel, demand unspent payments back, demand unused materials, and demand a written accounting, by written notice, with 15-day and 30-day seller response deadlines as described above.

Is there a one-third cap on down payments?

ATCP 110 does not state a general one-third deposit cap in the sections described here. The rule does require a written contract when any payment is collected before completion, and it limits how prepaid money can be handled if the seller fails to perform on time.

If a home improvement contract, a deposit, or a late project has you unsure about the next step, talk with a licensed local agent about related insurance questions, and use the official ATCP 110 contract and payment rules.

Sources: Wisconsin Administrative Code ATCP 110.05; Wisconsin Administrative Code ATCP 110.07; Wisconsin Administrative Code ATCP 110; DATCP, Home Improvement Consumer Tips.

Wisconsin does not issue one statewide "general contractor" license that covers every kind of building job. To obtain a building permit for a one- or two-family dwelling, a contractor generally needs a dwelling contractor credential from the Department of Safety and Professional Services, plus a dwelling contractor qualifier, except as provided in section 101.654.

The qualifier may be held by the contractor or by an employee the contractor engages. Look up current credentials before you sign a contract or let work begin.

What credentials apply to a house project?

DSPS issues a dwelling contractor certification, and a separate dwelling contractor qualifier, under SPS 305.31 and SPS 305.315 and section 101.654. The dwelling contractor credential is what a contractor needs to obtain a building permit for a one- or two-family dwelling, with limited exceptions. There is no pre-education requirement for the dwelling contractor certification itself.

Financial responsibility is part of that credential. The official rule requires a surety bond of at least $25,000 endorsed by a surety authorized in Wisconsin, or general liability insurance of at least $250,000 per occurrence, evidenced by an ACORD 25 form. Declarations pages are not the accepted proof in place of that form. If the applicant uses a bond of less than $25,000, a dwelling contractor-restricted certification is issued, and the card will read "Financial Responsibility-by a bond under $25,000 Certification."

The applicant must be the owner, a partner applying for a partnership, or the chairman or chief executive officer applying for a corporation, and must attest to worker's compensation and unemployment compensation compliance. If you are unsure about worker's compensation, the Department of Workforce Development Workers Compensation Division can be reached at (608) 266-1340.

An owner of a dwelling who resides or will reside in the dwelling and who applies for a permit to perform work on that dwelling is exempt from the dwelling contractor financial responsibility certification under section 101.654(1)(b). That owner-occupant path is not a license to hire an uncredentialed contractor to pull the permit in the owner's name as a workaround. If you are hiring someone to do the work, ask who will be named on the permit and whether that person holds the required DSPS credentials.

DSPS also licenses or certifies many trades that often appear on a house project, including electrical contractors and electricians, plumbers, and HVAC contractors and qualifiers. A dwelling contractor credential does not automatically replace a trade license. If the job includes electrical, plumbing, or heating work, ask for those trade credentials too, and confirm them in the same official lookup.

How do you look up a credential?

DSPS provides public license lookup tools, including the LicensE license lookup at license.wi.gov and the older trades search at licensesearch.wi.gov, which points consumers to the newer lookup. The public lookup is a consumer check, not a substitute for what a licensing board may treat as official verification in a board proceeding. Search the legal name, and ask the contractor for the credential number so you can match it.

If a salesperson claims to be licensed, bonded, or insured, Wisconsin's home improvement rule, ATCP 110, requires a written statement describing the type of license, bond, or insurance the seller possesses. Ask for that statement and compare it with the DSPS lookup and with an ACORD 25 or bond endorsement if financial responsibility is in question.

Unlicensed activity is a reason to pause. A building inspector may also refuse a permit if the dwelling contractor credential is missing. Before you pay a deposit, confirm:

• The legal name and DSPS credential number for the dwelling contractor
• The name of the person who holds the dwelling contractor qualifier
• Trade licenses for electrical, plumbing, or HVAC work included in the job
• Current financial-responsibility proof, and whether the card is a restricted certification based on a bond under $25,000
• Local permit and inspection requirements in the municipality where the house sits

Keep copies of the permit, the contract, and the lookup result with your project file. A companion article explains ATCP 110 written-contract and payment rules that apply to many home improvement jobs.

FAQ

Does Wisconsin have one statewide general contractor license?

No. For a one- or two-family dwelling permit, the usual state credential is a DSPS dwelling contractor certification, plus a dwelling contractor qualifier, with limited exceptions in section 101.654.

What financial responsibility does a dwelling contractor need?

The official rule calls for a surety bond of at least $25,000 or general liability insurance of at least $250,000 per occurrence on an ACORD 25 form. A bond below $25,000 leads to a restricted certification.

Can a homeowner pull a permit without the dwelling contractor credential?

An owner who resides or will reside in the dwelling and who applies for a permit to perform work on that dwelling is exempt from the dwelling contractor financial responsibility certification under section 101.654(1)(b). That is an owner-occupant rule, not a way to skip credentials for a hired contractor.

Where do I look up a Wisconsin contractor?

Use the official DSPS license lookup, including https://license.wi.gov/s/license-lookup, and confirm the legal name and credential number the contractor gives you.

If you are hiring work on a one- or two-family dwelling, talk with a licensed local agent about insurance questions, and confirm current DSPS dwelling contractor and trade credentials before work starts.

Sources: Wisconsin Department of Safety and Professional Services, Dwelling Contractor; DSPS License Lookup; Wisconsin Statutes section 101.654; Wisconsin Administrative Code SPS 305.31.