Massachusetts Office of Consumer Affairs & Business Regulation
One Ashburton Place
Room 1411
Boston, MA 02108
Administration: (617) 727-7755
Consumer Hotline: (617) 727-7780 or toll-free in Massachusetts: (888)283-3757
E-mail: consumer@state.ma.us
www.state.ma.us/consumer

In 1992, the Home Improvement Contractor Law (M.G.L.c.1 42A) was created to protect consumers and to regulate the practices of home improvement contractors. The law establishes an arbitration program for resolving disputes between homeowners and contractors. It also creates a Guaranty Fund to compensate consumers for unpaid judgments against home improvement contractors.

When choosing a contractor, check with the Board of Building Regulations and Standards to make sure that the workers you hire are currently registered with the state. If the contractor or subcontractor is not registered, you will not be protected by the Home Improvement Law. There may, however, be other remedies available to you through the court system.

There are some exceptions to the registration requirement. Contractors who do not need to be registered include installers or providers of central heating and air conditioning, energy conservation devices, landscaping, interior painting, wall and floor coverings, fencing, freestanding masonry walls, above ground pools, shutters, awnings, patios, driveways and certain licensed professionals such as architects, electricians and plumbers who provide services that are exclusively within the scope of their profession. Additionally, some part-time and small job (under $500) contractors do not need to be registered.

Registered contractors must display their six digit registration number on all advertisements, contracts and permits. Wherever you see the company or contractor's name displayed, you should also find a registration number nearby. The state issues an identification card to all registered contractors. Ask to see it in order to verify that the registration is valid and has not expired. If you discover that a contractor is not registered, contact the Office of Consumer Affairs and Business Regulation or the Board of Building Regulations and Standards (BBRS) to report this illegal act.

Always ask for a detailed written contract, even for small projects. It will protect you and help ensure that you and the contractor understand the scope of the job and the price. State law requires home improvement contracts over $1000 to be in writing. If contractors violate this provision, their registration may be suspended or revoked, and they can be fined or face criminal prosecution. Consumer Affairs can provide you with a sample contract.

Be sure the contractor obtains the building permit. If you apply for the permit, you will not be eligible for compensation from the Guaranty Fund.

If Something Goes Wrong

If you have a contract dispute or if you think the job was not completed to specifications, explore the following options:

Mediation: Mediation is an inexpensive and informal way to resolve your dispute without hiring an attorney or going to court. You may apply for mediation through your local consumer group, which is affiliated with the Attorney General's Office. Complaints filed with your local consumer group become a part of the Attorney General's record of complaints.

Arbitration: You may be eligible for state approved arbitration under the Home Improvement Arbitration Program. You must submit an arbitration application within two years of signing the home improvement contract. If accepted into the program, a hearing fee will be charged, based on a sliding scale linked to the size of the claim. An arbitration decision is legally binding, and may be appealed to court by either party within 21 days. Note: if the contractor fails to comply with the arbitration award and you intend to pursue relief from the Home Improvement Contractor Guaranty Fund, enforcement of the award may require additional court action. As such, you may want to talk to an attorney about avoiding costs for both arbitration and court by pursuing the claim in court from the outset.

Court Action:
You may also pursue your claim through the court system. For claims under $2000, Small Claims Court may be the least costly alternative. Consumer Affairs publishes a Consumer's Guide to Small Claims Court available upon request. Large claims may be more suitable for District or Superior Court. You should seek legal advice for all claims.

About Your Judgment

Be aware that in some cases, you may be prevented from or delayed in obtaining a judgment of any kind if the contractor you hired has filed for bankruptcy. If a contractor has filed for bankruptcy protection, you can contact Consumer Affairs to find out what recourse may be available to you.

The Guaranty Fund

If you win your case in arbitration or in court and the contractor fails to pay the award or judgment, you can apply to the Home Improvement Guaranty Fund for up to $10,000 of your actual losses. The Guaranty Fund was created as a fund of last resort for consumers who have an unpaid final judgment against a contractor.

After a consumer is paid from the Guaranty Fund, the responsible registered contractor is obligated to reimburse the Fund with interest within 30 days. Failure to repay the Fund may result in administrative fines, revocation of the contractor's registration and, in extreme cases, criminal prosecution.

To apply to the Fund, you must file a claim application within six months of the court judgment or arbitration award, and demonstrate that all reasonable efforts to collect the judgment have been exhausted, as defined by state regulations (201 CMR 15.03).

For more information about Guaranty Fund reimbursement and to obtain a claim application, call the Consumer Affairs Hotline at (617) 727-7780 or (888) 283-3757.

Sources of Help:

To check on a contractor's registration:

Home Improvement Contractor Registration
Board of Building Regulations and Standards
(617) 727-8598
www.magnet.state.ma.us/BBRS

To check a contractor's complaint history:

Office of Consumer Affairs and Business Regulation

Consumer Hotline
(Arbitration and Guaranty Fund history only.)
(617) 727-7780 or (888) 283-3757

Attorney General's Office
(617) 727-8400

Better Business Bureau
(617) 426-9000
(508) 755-2548
(413) 734-3114

To file a formal complaint:

Attorney General's Office
(617) 727-8400

To obtain applications for arbitration or the Guaranty Fund, a sample contract or more information about the Home Improvement Contractor Law:

Office of Consumer Affairs & Business Regulation
One Ashburton Place, Room 1411
Boston, Massachusetts 02108
(617) 727-7780 or (888) 283-3757
e-mail: consumer@state.ma.us
www.state.ma.us/consumer

Remodeling and improving your home can be a huge undertaking. Selecting a reputable contractor is the most important part of the home renovation process. Please refer to How to Select a Contractor for valuable suggestions from NARI on the selection of your remodeling contractor.

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