I Swear I Can Change: Essential Change Order Rules for Wisconsin Home Improvement Contractors

Have you ever been surprised to receive a bill from a contractor that was way more than you expected? Are you a contractor seeking to ensure that your contracts are in compliance with Wisconsin law?

This article addresses the requirement for written change orders in home improvement contracts under Wisconsin Administrative Code ATCP 110. The analysis will focus on the statutory and regulatory requirements for written change orders, the consequences of failing to comply with these requirements, and the consumer protection mechanisms available under Wisconsin law.

Legal Standards/Rules

1. Requirement for Written Change Orders: – Wisconsin Statute 100.20(5) and Wisconsin Administrative Code ATCP 110.02 require that changes to a written home improvement contract must be evidenced by the buyer’s written consent. Maringer v. Burback Builders, Inc., 2015 WI App 1, 359 Wis. 2d 269, 857 N.W.2d 486.
   
   – Wisconsin Administrative Code ATCP 110.05(2)(c) mandates that certain home improvement contracts, and any changes to such contracts, be in writing.

2. Consequences of Not Having Written Change Orders: – Wisconsin Administrative Code ATCP 110.05(2)(d) requires that a written home improvement contract clearly, accurately, and legibly set forth all material terms and conditions, including the dates or time period for the work to begin and be completed.
   
   – A violation of the requirements under ATCP 110 does not necessarily void the contract. However, the contractor may face penalties for failing to conform to the requirements of the code.

3. Consumer Protection and Remedies: – The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) adopted ATCP 110 pursuant to its authority under Wisconsin Statute 100.20(2). Section 100.20(5) provides that any person suffering pecuniary loss due to a violation of these regulations shall recover twice the amount of such pecuniary loss, together with costs, including reasonable attorney fees.
   
   -To recover under Wis. Stat. § 100.20(5), the plaintiff must demonstrate that they suffered a pecuniary loss as a direct result of the violation. Courts have consistently held that without showing a causal connection between the violation and the pecuniary loss, the plaintiff cannot recover double damages or attorney fees. See e.g. Coleman v. Picture Perfect Cable, Inc., No. 2023AP448, 2024 Wisc. App. LEXIS 725 (Ct. App. Aug. 29, 2024).

Analysis

The requirement for written change orders in home improvement contracts is clearly established under Wisconsin law. Wisconsin Statute 100.20(5) and Wisconsin Administrative Code ATCP 110.02 explicitly state that any changes to a written home improvement contract must be evidenced by the buyer’s written consent. Maringer v. Burback Builders, Inc., 2015 WI App 1, 359 Wis. 2d 269, 857 N.W.2d 486; and see Nelson & Sons Painting v. Cardenas, 2007 WI App 251, 306 Wis. 2d 449, 742 N.W.2d 75. This requirement ensures that all parties are aware of and agree to any modifications to the original contract terms, thereby preventing disputes and misunderstandings.

Furthermore, Wisconsin Administrative Code ATCP 110.05(2)(c) reinforces this requirement by mandating that certain home improvement contracts, and any changes to such contracts, be in writing. This provision aims to protect consumers from unscrupulous contractors who might otherwise make unauthorized changes to the contract.

The consequences of not having written change orders are significant but do not necessarily render the entire contract unenforceable. According to Wisconsin Administrative Code ATCP 110.05(2)(d), a written home improvement contract must clearly, accurately, and legibly set forth all material terms and conditions, including the dates or time period for the work to begin and be completed. However, case law indicates that a violation of these requirements does not automatically void the contract. This means that while the absence of written change orders may lead to legal disputes, it does not invalidate the entire agreement.

Consumer protection mechanisms are robust under Wisconsin law. DATCP adopted ATCP 110 pursuant to its authority under Wisconsin Statute 100.20(2), which provides a private remedy for consumers who suffer pecuniary loss due to violations of these regulations. Specifically, Wisconsin Statute 100.20(5) allows consumers to recover twice the amount of their pecuniary loss, along with costs and reasonable attorney fees. This provision ensures that consumers have a strong legal recourse in the event of unfair trade practices by contractors.

Conclusion

In conclusion, Wisconsin law requires that any changes to a written home improvement contract be evidenced by the buyer’s written consent. While the absence of written change orders does not necessarily void the contract, it can lead to legal disputes. Consumers are well-protected under Wisconsin law, with the ability to recover twice the amount of their pecuniary loss, along with costs and reasonable attorney fees, in the event of a violation.

If you are a contractor seeking to conform your contracts with Wisconsin Statute and Administrative Code, or a homeowner looking to protect yourself from an unscrupulous contractor, our experienced team can assist you.

Feel free to reach out to the legal professionals at West & Dunn online through our Contact Us page or by telephone at (608) 535-6420.