Hammering Home the Law
(Part I)

When it comes to hiring contractors to do home improvement projects, many consumers trip up because they don't know the steps to protect themselves. That's why it's so important to nail down what you need to know before you hire a home improvement contractor. Start by familiarizing yourself with your state's laws regarding contractors. Remember, when you hire someone you are entering into a contract with them and you want to take full advantage of whatever laws are available to protect you and your family. Some states, like Massachusetts, require most contractors and subcontractors who do residential home improvements to be licensed.

In Massachusetts there must be a written contract between the homeowner and the contractor for all jobs costing over $1,000. The law is very specific about what should be included in the contract. For instance, the contract has to identify the contractor by providing the contractor's full name, street address, contractor registrations and tax ID#. It also has to state the name(s) of any sales person who solicited or negotiated the contract. With regards to what you are hiring the contractor to do, make sure there is a complete description of all work to be done, including a list of the materials chosen. The contract should include the total price (material, labor and any additional charges), the start and completion date, and a payment schedule. In Massachusetts, a contractor cannot collect more that a third of the total charge up front or demand final payment until the work is done to the homeowner's satisfaction.

Massachusetts contacts should include a registration notice that clearly states that contractor and subcontractors are registered by the Board of Building Regulations and Standards and that any questions about a contractor or subcontractor should be directed to the Board's administrator. There also needs to be a permit notice. You as the homeowner want to make sure the contractor pulls all necessary permits. If you personally pull the permits you may reduce your options under the law if a dispute regarding the work done arises. It could also extend your liability for any work-related accidents and put you on the hook if the work is not done up to code. Even though the contractor is the one designated to pull the permits, you as the homeowner should check with your local building department to make sure the necessary permits actually were pulled!

You also want to make sure that your contract spells out any other terms and conditions of the contract such as guarantees, warrantees or arbitration agreements. Massachusetts contracts must include a warning to you the homeowner reminding you not to sign any contract or form that is missing provisions or isn't completely filled in. Finally, make sure both you and the contractor sign and date the contract before any work is started. Massachusetts homeowners are entitled to a three day cancellation notice.

Remember, even if the job is under $1,000, you still can and should ask for a contract! Some other issues you can address in your contract include what happens if weather causes a delay, how and when debris and leftover material will be removed, and anything else that is specific to what the contractor is going to do for you. Make sure you communicate what you want and expect very clearly. Use examples to illustrate what you have on your mind. And of course, take pictures before the work is started, while the work is being done, and after it is completed.

Another thing to be aware of is that you may be on the hook to subcontractors or suppliers if the contractor doesn't pay them. In Massachusetts, subcontractors and suppliers can file something called a "mechanic's lien" against your property if the contractor doesn't pay up. Each state has their own specific filing requirements, but the outcome is generally the same -the homeowner is on the hook! That's why you need to ask every supplier and subcontractor to sign a waiver stating they won't put a lien against your property if the contractor or subcontractor doesn't pay.

For more information on this topic, including how to choose a contractor, what type of insurance a contractor should have, scams you need to look out for, and what your options are if you have a problem with what your contractor did or didn't do, check out Hammering Home the Law (Part II).

Copyright 2006 - Law Office of Gina M. Ghioldi, P.C.

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