Indiana's Home Improvement Contract Act: What Contractors Need to Know

By Travis R. Watson — Attorney

Indiana home improvement contractors operate under a strict statutory framework known as the Indiana Home Improvement Contract Act (“HICA”). HICA imposes specific requirements on contracts for residential home improvements and is designed to protect homeowners who may lack familiarity with the home improvement industry.

When does HICA apply?

HICA applies to contracts exceeding $150 for the improvement of residential property, i.e., a house, and includes the fixtures, structures, and improvements of that residential property including electrical, plumbing, mechanical, and exterior work. HICA does not apply to the original construction of a dwelling but instead applies only to “home improvements.”

Required contract terms

  • Name of the consumer and address of the real property.
  • Name, address, and email address of the contractor.
  • Name, telephone number, and email address of each owner, officer, employee, or agent of the contractor.
  • Date the contract was submitted to the consumer and any time limit for acceptance.
  • A reasonably detailed description of the work, or in the alternative, a statement that the specifications will be provided and that the consumer must sign and date an approval of the specifications before any work begins.
  • Approximate start and completion dates along with any contingencies that could affect the timing.
  • Contract price.
  • A statement whether other party/subcontractor will be completing the home improvements or furnishing any labor, services, material, equipment, or machinery.
  • Signature lines for the contractor or contractor’s agent and for each consumer who is a party to the contract, with each person’s name typed or printed legibly below the signature line.

Contractors are prohibited from advertising or offering to pay or rebate any portion of an insurance deductible to induce a contract.1

Cancellation rights

HICA gives homeowners the right to cancel a home improvement contract within three business days after signing by delivering written notice to the contractor. Upon cancellation, the contractor must refund all monies paid, except for payment for work already performed. Contractors must also provide the homeowner with written notice of these cancellation rights and a cancellation form.

Contract modifications

A common issue that arises under HICA involves modifications to the contract (called “change orders”). HICA requires that change orders be in writing and signed by the homeowner. If the change order is not signed by the homeowner, the change order is not enforceable under HICA.

Consequences of noncompliance

Homeowners can assert claims or counterclaims alleging HICA violations. Further, a HICA violation constitutes a “deceptive act” under Indiana’s Deceptive Consumer Sales Act, potentially exposing contractors to actual damages, attorney’s fees, and increased difficulty collecting payment.

[1] Ind.Code. § 24‑5‑11‑10.5(c).

Contractors needing assistance with HICA are invited to contact Travis Watson for legal guidance.

Travis R. Watson

Travis R. Watson

Associate

Author Travis R. Watson 

Travis Watson is a highly skilled and approachable attorney who excels in providing responsive, thorough, and practical legal solutions.

Travis advises and represents clients in the areas of Worker’s Compensation, Construction Law, Insurance Defense, Civil Defense, Business Litigation, Business and Corporate Law, Commercial Litigation, and Family Law. With a depth of knowledge across many areas of the law, Travis is a trusted advisor and advocate, focused on delivering practical legal solutions designed to meet each client’s unique needs.

Prior to law school, Travis worked for more than ten years in the construction industry which gives him a unique background and knowledge base in his construction law practice. 

For more information or for a consultation about a specific issue, you may email Travis.

© Riley Bennett Egloff LLP

Disclaimer: Article is made available for educational purposes only and is not intended as legal advice. If you have questions about any matters in this article, please get in touch with the author directly.

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Posted on April 9, 2026,  by Travis R. Watson