Home Improvement Contractors

Home Improvement Contractors: A Model State Statute -- Introduction

America spent over $118 billion on home repairs in 1997, including more than $85 million for Home Improvement to owner-occupied housing and more than $33 million for  improvements to renter-occupied housing. Among homeowners aged 65 and older, 50 percent had home improvement completed within the previous 12-month period. Older persons are more likely to live in older homes--homes that tend to be in need of repairs-- often relying on home contractors. Statutes that address abuses committed against consumers by dishonest home improvement contractors are crucial in protecting all consumers--and older homeowners in particular--who are trying to maintain their homes.

A review of state statutes regulating home improvement contractors demonstrates that state regulation of these contractors varies widely. Some states have no applicable laws or regulations, while others have statutes specific to home improvement contractors.
 

Guide To Home Improvement

Every year, consumers spend millions of dollars on Home Improvements. Sometimes homeowners are cheated by Home Improvement Contractors. In 1992, the Home Improvement Contractor Law (M.G.L. c. 142A) was created to regulate the practices of Home Improvement Contractors.

Before You Begin the Project of Home Improvement

• Think about the specific design you want in your Home Improvement plan.

• Think about the materials you want to use. Visit Home Improvement centers, consult your Home Contractors.

• Clearly describe the work you want done in a specification sheet  for Home Improvement Contractors. When all Home Contractors who bid on a job work from the same design description, there is more likely to be a complete and accurate bidding process.

• Contact a professional building industry association for advice on the Home Improvement process, including the selection of a Home Contractors.

Before You Hire a Home Contractor

• Interview at least three Home Contractors and request a written, detailed estimate.

• Make sure that the Home Contractors you hire is currently registered with the state.

If the Home Contractor is not registered, you will not be protected by the Home Improvement Contractor Law. Registered Home Contractors must display their six-digit registration number on all advertisements, Home Improvement Contracts and permits. Wherever you see the company or contractor’s name displayed, you should also find a registration number nearby.

• Confirm references for each Home Contractor. Look at the jobs the contractor has completed. Contact the other homeowners who have hired the Home Contractor and find out if they have had any problems. Check the Home contractors complaint history with the Attorney General’s Office or the Better Business Bureau.

Before You Sign a Contract with the Home Improvement Contractor

Always ask for a detailed written contract, even for small projects. It will protect you and help ensure that you and the Home Contractor understand the scope of the job and the price. State law requires that Home Improvement contracts over $1,000 be in writing. If Home Contractors violate this provision, their registration may be suspended or revoked, and they can be fined or face criminal prosecution.
Be sure the contract contains:

• the identification of the Home Contractor, including the Home Contractor’s registration number;

• total price of the work of Home Improvement;

• the payment schedule of the Home Improvement Contractors;

• a provision for changes or "extras";

• a detailed list of specifications/materials;

• start and completion dates;

• a copy of the Home Contractor’s insurance;

• a permit notice warning you that if you secure your own building permit or deal with unregistered Home Contractors, you  will not be eligible for the Guaranty Fund;

• a 3-day cancellation notice, informing you of your right to cancel your contract if you signed the agreement in your home, or at a place other than at the Home Contractor’s office or business; and

• other details particular to your job.

If you apply for the permit, you may not be eligible for compensation from the Guaranty Fund. By law, the Home contractor cannot collect more than one-third of the cost of the contract in advance, unless special order materials are needed.

If you are financing your Home Improvement, be aware that contractors are not allowed to lend you the money, or act in association with any lending institution if the loan is secured by a mortgage on your home. Similarly, a contractor cannot offer you financing with a specific lender if your home is used as collateral.
 

Explore the following options in case you get something wrong::

• Mediation: This allows both parties to reach a mutually agreeable resolution with the help of a facilitator. requiring both parties’ consent. 

• Arbitration: You may be eligible for state-approved arbitration under the Home Improvement Arbitration Program.

A professional, neutral arbitrator hears the case with both parties present and makes a legally binding decision. Either party may appeal the decision in court within 21 days.