Hammering Home the Law
(Part II)

Springtime can be the perfect time for home improvements, but for some homeowners dealing with a contractor can be more of a nightmare than they ever dreamed possible. That's why you need to review your legal rights before you hire a home improvement contractor.

Before you sign on with any contractor check into their credentials! Many states, like Massachusetts, require most contractors and subcontractors to be licensed and/or registered, depending on the type of job being done - so check with your local building department for clarification. You also want to check with your state's Better Business Bureau and Attorney General's Office to find out if there have been any complaints against the contractor or subcontractor for incomplete or shoddy workmanship. You want to make sure there haven't been any claims of unfair or deceptive trade practices.

Don't be afraid to ask for references too- and make sure you follow-up and contact those references. You have a legal right to ask specific questions about a contractor's business practices, reliability, and whether there were unexpected costs. And don't forget to ask that million dollar question - would the reference hire the contractor or subcontractor again?

There are some wonderful and honest contractors out there and those are the ones you want to do business with. A good contractor will have no problem giving you a detailed estimate that spells out the specifics for the job. You want all estimates to be in writing and include a list of the materials being used, what labor is going to be done, a timeline of how long it should take and the total charges. In Massachusetts, the law is clear that any job for over a $1,000 must have a written contract with very specific language in it.

With regards to insurance, in Massachusetts every employer including contractors must carry Workers Compensation insurance. Regardless of whether it's legally required or not, though, you want your contractor to carry insurance that protects you and your property in case something goes wrong. Ask about personal liability and property damage coverage. Demand copies of the insurance certificates or binders to make sure the coverage is still in effect.

You also have to be on the alert for scams. Watch out for anyone who knocks on your door and tells you they have leftover sealant and can reseal your driveway for a really cheap price. These scam artists have been known to get aggressive and call the police if you don't pay up when they demand more money for the job after they do it. You also want to stay clear of any contractor who solicits you saying they noticed your roof or chimney is leaking. If someone you didn't contact comes up and warns you that if you don't hire them to make a repair right away your chimney could fall or your house will be seriously damaged - don't listen. Call in a reputable contractor to check things out. Another scam to watch out for is when a contractor tells you not to worry about getting financing for a home improvement project you can't afford because they have a friend in the lending business. This usually adds up to very high rates, points and unnecessary fees. A contractor who is paid directly by a lender has very little incentive to finish the job or repair a job poorly done.

If you do have a problem with shoddy workmanship or a contractor/subcontractor not completing a job, call a local attorney. So long as your contract permits, you always have the option to file a lawsuit against the contractor or subcontractor, but that can be very costly up front and can take what seems like forever. Very often, arbitration is a better alternative because it is often much less expensive and quicker. Some states, like Massachusetts, have funds available to help out homeowners who have been wronged by a contractor or subcontractor.

Here in the Commonwealth, the Massachusetts Home Improvement Guaranty Fund is available to wronged homeowners in amounts up to $10,000 per job, but remember in order to qualify you must file for relief within 6 months of an arbitration award or court judgment and prove:

1. you had a contract for the job;
2. the contractor was registered with the Board of Building Regulations and Standards at the time of the contract;
3. the contractor pulled all building permits;
4. the contract was for work on a pre-existing 1-4 family residence that is the owner's primary residence; and
5. you have tried all reasonable efforts to collect the money owed to you.

If you do find yourself in a situation where you haven't gotten what you paid a contractor to do, step back, call your attorney and carefully review your options. And remember, your options will depend on what you did or didn't do when hiring the contractor. That's why it is so important to very carefully review the law and your legal rights up-front - before a problem hits home.

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

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