815 ILCS 513: Contracts, Disclosures, Insurance, and Liability
Illinois Home Repair and Remodeling Act
The Act sets mandatory rules for residential remodeling work in Illinois. Contractors who follow it protect their right to be paid. Homeowners who know it can hold a contractor to its obligations.
Last updated: October 2026
The Illinois Home Repair and Remodeling Act, 815 ILCS 513, governs how contractors contract for and perform repair and remodeling work on Illinois homes. It requires a signed written contract before work begins on any job over $1,000, requires every contractor to give the customer the Attorney General's consumer rights pamphlet, sets minimum liability insurance limits, and controls how arbitration clauses and attorney fee provisions operate in residential remodeling contracts.
The Act is a consumer protection statute, but it matters most to contractors when a job goes wrong. When a remodeler sues for an unpaid balance or records a mechanic lien, the homeowner's first defense is often that the contractor never complied with the Act. Whether that defense succeeds depends on what the contractor did at the start of the job, which is why compliance belongs in the form contract and not in the collection file. For the broader framework of residential payment rights, see our Illinois construction law guide and our overview of Illinois mechanic lien rights.
Emalfarb Law LLC drafts Act-compliant contract forms for Illinois remodelers, roofers, and trade contractors, and represents both contractors and homeowners in disputes where the Act is in play. This page sets out what the statute requires, what the Illinois courts have held about violations, and how the Act interacts with lien and collection remedies.
What Does the Home Repair and Remodeling Act Cover?
Section 10 of the Act defines home repair and remodeling as the fixing, replacing, altering, converting, modernizing, improving, or making of an addition to any real property primarily designed or used as a residence, other than maintenance, service, or repairs under $500. 815 ILCS 513/10. The definition is broad. Kitchen and bathroom remodels, roof replacements, basement finishing, additions, window and siding work, decks, porches, driveways, and mechanical system replacements all fall within it when performed on a covered residence.
A residence is a single-family home or a multiple-family building containing six or fewer apartments, condominiums, town houses, or dwelling units. The Act does not reach original construction of single-family or multi-family residences, or repairs to buildings with more than six units. The test is the character of the property and the nature of the work, not whether the owner lives in the home. That distinguishes the Act from the 60-day residential lien notice, which turns on owner occupancy.
Generally Covered
- Remodeling a kitchen or bathroom in a single-family home
- Roof, siding, window, or gutter replacement
- Additions, decks, porches, and garages
- Furnace, boiler, water heater, or central air replacement
- Work on a two-flat or six-unit building
- Repair or service work of $500 or more
Generally Not Covered
- Original construction of a new home
- Maintenance, service, or repairs under $500
- Repairs to buildings with more than six units
- Commercial and industrial property
- Work an owner performs on the owner's own home
What Must a Written Home Repair Contract Include?
Before initiating home repair or remodeling work for over $1,000, the contractor must furnish the customer a written contract or work order for signature. 815 ILCS 513/15. Section 30 makes it unlawful to begin the work, or to charge for it, before the customer has signed that contract or work order. A contract signed after the crew has already started does not cure the violation.
The statute sets the minimum content. A compliant contract should contain each of the following elements:
The total cost of the work, including all parts and materials
Parts and materials listed with reasonable particularity, not a single lump-sum line
Any charge for an estimate
The contractor's business name and business address; a contractor that receives business mail at a post office box, mail service, or agent must also state its home address
The customer's signature, obtained before any work begins or any charge is made
Accept or reject lines, signed by the customer, beside any arbitration clause or jury waiver (Section 15.1)
The statutory minimum is not the same as a good contract. A contract that satisfies Section 15 but omits a payment schedule, a change order procedure, a lien rights clause, a dispute resolution provision, and a defined scope of work will comply with the Act and still leave the contractor exposed when the homeowner stops paying. Change orders deserve particular attention. Extra work over $1,000 that is not documented in a signed writing is the most common source of Act-based defenses in remodeling collection cases.
The Attorney General's guidance adds several practical terms. Contractors should notify the customer of any change to the business name or address that occurs before the agreed start or completion date, and contractors offering roofing work must include their Illinois roofing license name and number on contracts and bids.
Homeowner Cancellation Rights
The Attorney General's Know Your Consumer Rights pamphlet advises homeowners of three cancellation rights that contractors must account for in their forms and scheduling:
Sales made at the home: the homeowner may cancel within three business days after signing. The contractor cannot defeat this right by starting work, selling the contract to a lender, or any other tactic. The Consumer Fraud Act, 815 ILCS 505/2B, and the Federal Trade Commission's Cooling-Off Rule, 16 C.F.R. Part 429, govern these sales.
Homeowners age 65 or older: up to 15 business days to cancel a contract signed with an uninvited solicitor in the home.
Insurance-funded work: if the homeowner's insurer notifies the homeowner that all or part of the claim is not a covered loss, the homeowner may cancel by written notice before the earlier of midnight on the fifth business day after receiving the insurer's notice or the thirtieth business day after the insurer receives a properly executed proof of loss. The contractor must return payments within 10 business days after receiving the cancellation, but is entitled to the reasonable value of emergency goods or services the homeowner acknowledged in writing were necessary to prevent damage to the premises.
A contractor that starts work or orders custom materials during an open cancellation window bears the risk of that decision. Build the applicable cancellation notice into the form contract and schedule the start date after the window closes.
The Consumer Rights Pamphlet and Acknowledgment Form
Section 20 of the Act requires every contractor to provide the customer with the Attorney General's pamphlet titled Home Repair: Know Your Consumer Rights. 815 ILCS 513/20. The obligation applies to every job covered by the Act, regardless of size. The documentation requirement depends on the contract amount.
| Contract Amount | Pamphlet Required | Signed Acknowledgment | Written Contract |
|---|---|---|---|
| $1,000 or less | Yes | No | Not required by the Act |
| Over $1,000 | Yes, before the contract is signed | Yes, signed and dated by both parties | Yes, before work begins |
On jobs over $1,000, the customer and the contractor sign and date a Consumer Rights Acknowledgment Form confirming receipt of the pamphlet. The contractor retains the original and the customer retains a copy. The signed form is the contractor's only reliable proof of compliance. A contractor who cannot produce it should assume that a court will find the pamphlet was never delivered.
Arbitration Clauses, Jury Waivers, and Attorney Fees
Section 15.1: The Accept or Reject Requirement
A contractor who presents a written contract containing a binding arbitration clause or a jury waiver must advise the consumer of each clause and give the consumer the option to accept or reject it. 815 ILCS 513/15.1. The consumer documents the choice by signing and writing accept or reject next to each clause in the executed contract. If the contractor fails to advise the consumer, or fails to secure the signed acceptance or rejection, each clause that was not accepted or rejected and signed is null and void. Section 30 further prohibits beginning work before the consumer has made that election. An arbitration clause buried in standard terms and conditions will not be enforced against an Illinois homeowner.
Section 31: Reciprocal Attorney Fees (Effective August 1, 2025)
Public Act 104-0033 added Section 31 to the Act. For home repair and remodeling contracts executed on or after August 1, 2025, a contract provision that allows attorney fees to be awarded to any party is deemed and construed to permit the award of reasonable attorney fees to all parties to the contract, notwithstanding any contrary term. 815 ILCS 513/31.
The amendment changes the risk calculation for contractors. A one-way fee clause that lets only the contractor recover fees in a collection action now operates in both directions. If the homeowner prevails on a defense or counterclaim, the homeowner may recover fees under the contractor's own clause. Contractors should review their form contracts for any fee language drafted before August 2025 and decide deliberately whether a fee clause still serves them. For collection strategy on residential balances, see our page on contractor collections in Illinois.
What Insurance Does the Act Require?
Section 25 requires a person engaged in the business of home repair and remodeling to maintain liability insurance at or above the following minimum limits. 815 ILCS 513/25.
| Coverage | Minimum Limit |
|---|---|
| Bodily injury, per person | $100,000 |
| Bodily injury, per occurrence | $300,000 |
| Property damage, per occurrence | $50,000 |
| Work that does not conform to state, county, or municipal codes, per occurrence | $10,000 |
A contractor with a net worth of at least $1,000,000, shown by a financial statement prepared within the preceding 13 months, is exempt. These limits are statutory floors. Many municipalities, lenders, and condominium associations require higher limits and additional insured endorsements, and roofing contractors face separate licensing and bonding requirements under the Illinois Roofing Industry Licensing Act. Homeowners should obtain a current certificate of insurance before any work starts.
What Happens If a Contractor Violates the Act?
The Contract Remains Enforceable
Before 2010, Illinois appellate courts were divided on whether a contractor that failed to obtain a written contract could recover anything at all. In Smith v. Bogard, 377 Ill. App. 3d 842 (4th Dist. 2007), the court barred a noncompliant contractor from recovering in quantum meruit. The General Assembly responded with Public Act 96-1023, and the Illinois Supreme Court resolved the split in K. Miller Construction Co. v. McGinnis, 238 Ill. 2d 284 (2010). The Court held that a contractor who failed to obtain a written contract for remodeling work over $1,000 could recover on the oral contract and, alternatively, in quantum meruit. It treated Public Act 96-1023 as a clarification that a violation of the Act does not render oral contracts unenforceable or quantum meruit relief unavailable, and it rejected Smith v. Bogard.
McGinnis protects the contractor's right to be paid for work actually performed. It does not make compliance optional. A contractor suing on an oral agreement must prove its terms through testimony, text messages, and invoices, and a court deciding what the parties agreed to will resolve doubts against the party that was required by statute to put the terms in writing.
Consumer Fraud Act Exposure
Section 2Z of the Consumer Fraud and Deceptive Business Practices Act provides that a person who knowingly violates the Home Repair and Remodeling Act commits an unlawful practice under the Consumer Fraud Act. 815 ILCS 505/2Z. A homeowner who suffers actual damage from a violation may bring a private action under Section 10a of the Consumer Fraud Act, 815 ILCS 505/10a, which authorizes actual damages, and in the court's discretion, attorney fees and costs.
Two elements limit that exposure. The violation must be knowing, and the homeowner must prove actual damages caused by it. In Kunkel v. P.K. Dependable Construction, LLC, 387 Ill. App. 3d 1153 (5th Dist. 2009), the contractor failed to provide the consumer rights pamphlet, but the homeowners offered no evidence of the contractor's state of mind and no evidence that the omission caused them harm. The appellate court reversed the Consumer Fraud finding and the fee award. A homeowner who argues that the missing paperwork excuses payment for completed, satisfactory work will generally lose. A homeowner who shows that a contractor's pattern of noncompliance concealed price terms or induced the contract stands on much firmer ground.
Attorney General Enforcement
Section 35 of the Act authorizes the Illinois Attorney General to restrain and prevent any pattern or practice violation of the Act. 815 ILCS 513/35. Fraudulent home repair conduct, such as misrepresenting the need for repairs or taking deposits with no intent to perform, is separately punishable as a crime under the Home Repair Fraud Act, 815 ILCS 515. Those prosecutions are reserved for misconduct well beyond a paperwork lapse.
How Does the Act Affect Mechanic Lien Claims on Residential Work?
The Home Repair and Remodeling Act and the Mechanics Lien Act, 770 ILCS 60, operate side by side on residential remodeling projects. Because McGinnis holds that a violation of the Act does not render the underlying contract unenforceable, a contractor's failure to use a written contract or deliver the pamphlet does not, by itself, defeat a lien that is otherwise timely and properly perfected. The lien still requires a valid contract with the owner or someone authorized by the owner, a recorded claim within four months of the last date of work, and, for subcontractors, the required notices.
In practice, the two statutes collide in foreclosure litigation. The homeowner answers the lien foreclosure complaint with Act-based affirmative defenses and a Consumer Fraud counterclaim, and the case becomes a dispute over the contractor's paperwork rather than the homeowner's unpaid balance. A contractor with a signed contract, a signed acknowledgment form, and signed change orders avoids that detour entirely.
Subcontractors on owner-occupied single-family homes must also serve the 60-day residential notice and the 90-day Section 24 notice. All claimants should calendar the Illinois mechanic lien deadlines from the first day on the job.
Steps for Every Residential Job
We give our remodeling and trade contractor clients the following standing instructions for residential work in Illinois:
- 1
Written agreement
For work over $1,000, provide a written contract or work order before starting. Include the total price, a reasonably detailed description of parts and materials, any estimate charge, and the required business and address information. Obtain the homeowner's signature and give them a copy.
- 2
Consumer rights pamphlet
Give the homeowner the required Home Repair: Know Your Consumer Rights pamphlet. For contracts over $1,000, deliver it before signing and have both the homeowner and your representative sign and date the acknowledgment. Keep the original and give the homeowner the duplicate. For smaller covered jobs, provide the pamphlet even though an acknowledgment is not required. The pamphlet is available for download below.
- 3
Extra work
As a standard practice, obtain a signed change order identifying the additional work and price before proceeding.
- 4
Insurance and cancellation rights
Have your insurance agent confirm that your policy meets the Act's requirements. Have us review your forms for applicable cancellation notices and any arbitration or jury waiver provisions.
A paperwork violation does not automatically eliminate your right to payment, but it can create additional exposure. If you have open residential jobs, we should confirm the existing records and tighten your process going forward. Contractors should also review any attorney fee clause against Section 31, discussed above.
Guidance for Homeowners
Before signing a remodeling contract, a homeowner should confirm that the contract states a total price and itemizes materials, that the contractor has provided the consumer rights pamphlet, and that the contractor carries the required insurance. Read any arbitration clause or jury waiver carefully before writing accept or reject beside it, because that election controls where any later dispute will be decided.
If a dispute has already arisen, the Act is a tool, not a pass. A homeowner who withholds payment for completed work solely because the contractor skipped the paperwork faces a lien and a lawsuit that McGinnis will likely allow the contractor to win. A homeowner with genuine damages from defective work, concealed charges, or a contractor's knowing violations should preserve the contract, photographs, invoices, and communications, and should obtain counsel before the contractor's lien deadline runs.
Illinois Attorney General Home Repair Resources
The Illinois Attorney General publishes the required consumer rights pamphlet and several related guides for homeowners. Contractors should keep a supply of the current pamphlet on hand and confirm the revision date periodically on the Attorney General's home repair page.
Home Repair: Know Your Consumer Rights
The pamphlet every contractor must give the homeowner under 815 ILCS 513/20. Includes contract tips, cancellation rights, lien waiver guidance, and the two-part Consumer Rights Acknowledgment Form.
Home Repair and Construction: What You Should Know
The Attorney General's guide to common home repair scams, choosing and vetting a contractor, contract terms, payment schedules, and mechanic liens and lien waivers.
Home Repair and Construction: How to Choose a Contractor
Guidance on gathering referrals, checking complaint records, confirming insurance, comparing estimates, and asking about warranties before hiring a contractor.
The Savvy Consumer's Checklist: Home Repair
A one-page checklist covering references, written estimates, licensing and insurance, written contracts, and the homeowner's cancellation rights.
These publications are prepared by the Office of the Illinois Attorney General and are reproduced for convenience. Emalfarb Law LLC is not affiliated with the Attorney General's office.
Frequently Asked Questions About the Illinois Home Repair and Remodeling Act
Related Resources
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