PRACTICE AREAS:
HOME IMPROVEMENT CONTRACTOR ISSUES

Among the most common problems I see in my practice are disputes between clients and home improvements contractors. These disputes are often triggered by contractors who perform substandard work but who nonetheless believe they are entitled to full payment for their work. In some instances the contractor is in financial trouble and abandons work on a particular project in favor of a more lucrative job. With so many people choosing to renovate or expand their homes, the breadth and animosity of these disputes seems to know no end.

Dealing with contractors can often be as fun as a root canal. However, there are some things that you as a homeowner can do to make the process more bearable and to reduce the likelihood that you'll need to hire an attorney to deal with a problem or dispute:

•  Only hire contractors who are registered with the state. Home improvement contractors are required to be licensed by the Executive Office of Consumer Affairs. To confirm registration and good standing, go to www.mass.gov .

•  Dealing with only registered contractors gives you several advantages. First, if a contractor goes “bust” and has not completed your project, the state has a contractor security fund that pays up to $10,000 to homeowners who obtain a judgment or arbitration award against the contractor but who cannot collect that judgment or award from the contractor. Second, all registered contractors are bound to agree to arbitrate disputes with homeowners if the homeowners requests it. This is a real plus for those who would rather avoid the expense and bureaucratic delay of the court system. Finally, as will be explained below, registered contractors must include several provisions in their contracts or face liability under the Massachusetts Consumer Protection Act, otherwise known as Chapter 93A.

•  Homeowners often wish to make changes or additions to the scope of a home improvement project. Be sure to make sure the both specific nature of any changes, and the cost to you are set forth in writing, in a document signed by both you and the contractor.

•  Document any important communications with your contractor. In the electronic age, this can be done through an e-mail to the contractor (if a contractor doesn't have an e-mail address, this should be a red flag).

•  All home improvement contracts (where a registered contractor is performing the work) must contain several provisions, including the following: the registration number of the contractor; a schedule of the timing of the payments under the contract; the date of completion; and a notice that you have three days from the signing of the contract to cancel it by written notice. The failure to have even one of the required provisions in a contract constitutes a violation of Chapter 93A and entitles the homeowner to statutory damages of $25.00, together with attorne's fees. This is a useful basis for a counterclaim and in the course of my practice has often served as the basis for achieving settlements of disputes favorable to the homeowner.