Not legal advice. This page explains Wisconsin's rules in plain English, with each one linked to the law or agency page it comes from. For a dispute over real money, talk to a lawyer; the State Bar's Lawyer Referral Service is (800) 362-9082.(DATCP)
What ATCP 110 Covers
- Home improvement means remodeling, altering, repairing, painting or modernizing a home, or building an addition.(ATCP 110.01) The rule names driveways, sidewalks, pools, patios, landscaping, fences, porches, garages, basement waterproofing, heating and air conditioning, water softeners, carpet and attached flooring.(ATCP 110.01)
- Not covered: building a new house, or a "major renovation" whose price is more than the assessed value of the existing structure.(ATCP 110.01)
- Who it binds: anyone in the business of selling or doing home improvements, including salespeople and employees.(ATCP 110.01) It protects the owner, or a tenant who pays for the work.(ATCP 110.01)
- Oral deals count. A home improvement contract can be oral or written; the rule applies either way.(ATCP 110.01)
What the Contract Must Say
A written contract is required whenever you pay anything before the work is done.(ATCP 110.05) It's also required when the seller came to you: door to door, by phone or mail, or by leaving flyers. Changes to those contracts must be in writing too.(ATCP 110.05) Use this as a checklist:
| Item | What it must include |
|---|---|
| Signatures | Signed by everyone who is a party to it, with all material terms clearly stated.(ATCP 110.05) |
| Who | The seller's name and address, and the name and address of the salesperson who sold the job. If another company will be the general contractor, its name.(ATCP 110.05) |
| What | A description of the work and the main products: name, make, size, capacity, model and model year, and the type, grade and quantity of materials.(ATCP 110.05) |
| Price | The total price, including any finance charges. For time-and-materials work, the hourly labor rate.(ATCP 110.05) |
| When | Start and completion dates, or time frames.(ATCP 110.05) |
| Security | Any mortgage or other security interest taken on your property.(ATCP 110.05) |
| Warranty | Any warranty, and a list of any other documents that are part of the contract.(ATCP 110.05) |
| Protection plans | If you're promised insurance or other protection, what it is. You get proof before final payment.(ATCP 110.05) |
| Lien notice | If the contractor uses subcontractors or suppliers, the statutory lien notice in bold type. This comes from the lien law, not ATCP 110.(Wis. Stat. 779.02) |
- You get a copy before work starts or before you pay anything.(ATCP 110.05)
- The contract can't be sold or assigned to another contractor without your written consent.(ATCP 110.05)
- If you can't read it, a person you choose who isn't connected to the seller must read and explain it. If the sale was in another language, the contract must be in English and that language.(ATCP 110.05)
- Damages charged to you for breaking the contract can't be more than 10% of the price.(ATCP 110.05)
Before You Sign
- Permits. The seller must tell you every permit the job needs, and can't start until required state and local permits are issued.(ATCP 110.03)
- Lien waivers. The seller must give you a separate written "Notice of Consumer's Right to Receive Lien Waivers."(ATCP 110.025) How liens work.
- Costs. Financing charges, interest, credit check costs, permit fees and other costs must be disclosed, along with any delivery or installation not included in the price.(ATCP 110.02) The seller must also say if your contract or note may be sold to a lender.(ATCP 110.02)
- Licenses and insurance. If the seller says it's licensed, bonded or insured, it must give you a written statement describing the license, bond or insurance.(ATCP 110.02) Check the license yourself with the credential checker.
- Right to Cure brochure. At signing, the contractor must give you a brochure on Wisconsin's Right to Cure law, which requires written notice of a defect before you sue.(DATCP)
- Warranties. You get a copy of every written warranty, and oral warranties must be put in writing. A seller's own warranty is due at signing.(ATCP 110.04) It must state its conditions, exclusions, length and how fast the seller will act on a valid claim.(ATCP 110.04)
Banned Sales Practices
ATCP 110.02 lists what home improvement sellers may not do.(ATCP 110.02) Among them:
- Falsely saying your roof, furnace or another part of the house is dangerous, defective or needs replacing.
- Getting into your home by posing as a government or utility inspector.
- Claiming your home will be a "model" or "advertising job" to make you think you're getting a discount.
- Faking a special price: introductory, close-out, factory, wholesale, or "leftover materials from another job."
- Advertising one product to push you into a pricier one, or falsely saying the advertised one is unavailable.
- Misstating a product's brand, grade, performance, code compliance or maintenance needs.
- Delivering materials or starting work to pressure you into a contract.
- Taking payment for work or materials they don't intend to provide.
- Implying the down payment is all you'll owe.
- Asking you to sign a completion certificate or make final payment before the work is done.
- Any false or misleading statement to get a contract, collect or keep payment, or delay the work.
Changes, Delays and Payment
- Your money is for your job. Payments made before the work is done can only be used for materials and services on your job.(ATCP 110.02) Money paid to a contractor is also held in trust for its subcontractors and suppliers; using it for anything else before they're paid is theft.(Wis. Stat. 779.02)
- Substitutions. No changing products or materials without your consent, and with a written contract the consent must be in writing.(ATCP 110.023)
- Delays. The seller must tell you promptly about any delay past a contract deadline, with the reasons and new dates. With a written contract, new dates take effect only if you agree in writing.(ATCP 110.027) Delays you cause, or caused by tornado, flood, fire, a strike or war, are excused.(ATCP 110.027)
- Cancel for delay. If you paid ahead and the seller misses a contract deadline or doesn't give delay notice, you can cancel in writing. You can then demand unspent money back within 15 days, materials bought with your money, and a written accounting within 30 days.(ATCP 110.07) Deliver the notice in person, by certified mail, or by regular mail with proof of mailing.(ATCP 110.07)
- Inspections. Where inspections are required, you get copies of the inspection certificates, or a summary, before final payment is due.(ATCP 110.03)
- Financing. If the contract is sold to a finance company, you keep your claims and defenses against it.(ATCP 110.06)
- Basement waterproofing has extra rules: a written analysis before you sign, any guarantee in writing, and remedial work under a guarantee starting within 45 days and finished within 6 months of your notice.(ATCP 110)
Your Right to Cancel
ATCP 110 has no cancellation period of its own; it points to the Wisconsin Consumer Act for sales made away from the seller's business.(ATCP 110)
- Who gets it. Sales the seller started face to face away from its business, or by mail or phone aimed at you, signed away from its business, on credit or for more than $25 cash.(Wis. Stat. ch. 423)
- The deadline. Midnight of the third business day after the seller gives you the cancellation notice; the clock doesn't start until you have it.(Wis. Stat. ch. 423) Wisconsin business days don't count Saturdays, Sundays or listed holidays.(Wis. Stat. ch. 421)
- The notice. The seller must give you 2 copies of a "Customer's Right to Cancel" notice in at least 12-point bold type.(Wis. Stat. ch. 423)
- How. Mail any written statement that you don't want to be bound; it counts when mailed.(Wis. Stat. ch. 423) DATCP suggests certified mail, return receipt requested.(DATCP)
- Refund. Within 10 days, all money including any down payment, and any security interest is void. A seller who did work before you cancelled gets nothing for it.(Wis. Stat. ch. 423)
- Emergencies. You give up the right only if a 3-day wait would endanger people or property, you write and sign your own dated statement (printed waiver forms aren't allowed), and the seller has substantially started work.(Wis. Stat. ch. 423)
- Big cash jobs. The Wisconsin Consumer Act doesn't apply to cash or credit deals over $25,000.(Wis. Stat. ch. 421) The federal Cooling-Off Rule has no upper limit: it covers sales of $25 or more at your home and $130 or more at other temporary locations, with 3 business days to cancel (Saturdays count) and a refund within 10 business days.(16 CFR 429) It doesn't cover a repair visit you asked for, though extra goods or services sold during that visit are covered.(16 CFR 429)
Insurance-claim roofing and siding contracts have one more cancellation right. See storm chasers.
If the Rules Are Broken
If you lose money because of a violation, you can sue for twice your loss plus costs and reasonable attorney fees.(ATCP 110)(DATCP) DATCP takes complaints and mediates. Contractor complaints covers DATCP, DSPS and Dane County small claims.
Questions
What is ATCP 110?
Wisconsin's home improvement rule, enforced by DATCP. It bans misleading sales practices, says when a written contract is required and what it must contain, and covers permits, warranties, delays, substitutions and lien waivers. It covers repairs, remodeling and additions to existing homes, not new houses.
Does a home improvement contract have to be in writing in Wisconsin?
Yes, if you pay anything before the work is finished, or if the seller came to you door to door, by phone or mail, or with flyers. Any changes to those contracts must be in writing too.
Can I cancel a contract I signed at home?
Usually. Under Wisconsin's Consumer Act you can cancel a sale made at your home by mailing written notice before midnight of the third business day after you get the cancellation notice, and the seller must refund you within 10 days. The federal Cooling-Off Rule gives a similar right for sales of $25 or more at home.
How much can a contractor ask for up front in Wisconsin?
ATCP 110 sets no limit on a down payment. It does require a written contract when you pay anything before the work is done, says the money can only be used for your job, and lets you cancel and demand unspent money back if the contractor misses its deadline.