Ohio Home Construction Service Suppliers Act (ORC 4722): What Contractors Must Know

When ORC Chapter 4722 Applies

The Home Construction Service Suppliers Act (HCSSA) governs any residential construction, remodeling, or renovation contract on a one-, two-, or three-family dwelling where the total value is $25,000 or more. The law is enforced by the Ohio Attorney General's Consumer Protection Section, not by the OCILB or local building departments.

Below the $25,000 threshold, residential transactions fall under the broader Consumer Sales Practices Act (CSPA, ORC Chapter 1345) instead.

The September 2024 Amendment Changed the Scope

Before September 20, 2024, the HCSSA primarily covered new residential construction. Large remodeling and renovation projects — even $100,000 kitchen overhauls — fell under the CSPA, which allows consumers to pursue treble (triple) damages.

The 2024 amendment brought all residential remodeling, repair, and renovation contracts of $25,000 or more under the HCSSA umbrella. For contractors, this is actually a significant protection: the HCSSA shields you from the treble-damage provisions of the CSPA, replacing them with a more predictable (if strict) set of contract and disclosure requirements.

Mandatory Contract Requirements

Under ORC § 4722.02, you cannot perform work on a covered non-cost-plus residential project without a written contract that includes:

• Your business name, physical address, taxpayer identification number, and phone number
• A detailed description of all services and materials
• A complete cost estimate (or firm fixed price)
• Expected start and completion dates
• A copy of your general liability insurance certificate

If the total amount of reasonably unforeseen but necessary excess costs exceeds $5,000 over the course of the entire contract, you must provide the homeowner with a written or verbal estimate, as selected in the contract, before proceeding — unless the contract specified a firm, fixed price.

Deposit and Payment Rules

For covered non-cost-plus contracts, the HCSSA caps down payments at 10% of the total contract price before work begins. The one exception: special-order items (custom cabinets, specialty fixtures), where you can collect up to 75% of the special-order cost.

Taking more than the permitted down payment can violate ORC § 4722.04, which can trigger an investigation by the Attorney General.

Insurance Minimum

Contractors operating under ORC 4722 must carry at least $250,000 in general liability insurance. For covered non-cost-plus projects, a copy of the insurance certificate must be physically attached to or included with the written contract. This is a lower threshold than the $500,000 required for OCILB commercial specialty trades, but it's a hard floor — working without it on covered projects is a violation.

Enforcement

Violations of ORC Chapter 4722 are treated as unfair or deceptive acts under the CSPA. The Ohio Attorney General can investigate, subpoena records, issue cease-and-desist orders, and impose civil penalties up to $25,000 per violation. The key enforcement mechanism is the contract requirement itself: if a homeowner files a complaint and you can't produce a compliant written contract, the burden falls squarely on you.

Our Ohio General Contractor License Guide includes the full ORC 4722 compliance framework, with contract templates and the specific disclosures that satisfy the statute.

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