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[MASSACHUSETTS] Required contract terms in a home improvement contract

Hiring a contractor for a home improvement job? Your contract must contain certain items.

Under the Home Improvement Contractor law, all contracts over $1,000 (One Thousand Dollars) must be in writing. However, homeowners and contractors should consider having a contract for every job, regardless of the price. 

Necessary Contract Language

The following items must be included in any contract between a homeowner and a registered home improvement contractor for home improvement work.

  1. The complete agreement between the contractor and the owner and a clear description of any other documents which are part of the agreement.
  2. The full names, federal I.D. number (if applicable), addresses (NOT P.O. Box numbers), of the parties, the contractor’s registration number, the name(s) of the salesperson(s) involved, if any and the date the contract was executed by the parties. The contractor’s registration number must be on the first page of the contract.
  3. The start and completion dates of the project.
  4. A detailed description of the work to be done and the materials to be used.
  5. The total price of the work.
  6. The payment schedule, with the dates and the amount of each payment stated in dollars, including any finance charges. Any deposit required to be paid in advance of the start of the work cannot exceed one-third of the total contract price or the actual cost of any material or equipment of a special order or custom made nature, which must be ordered in advance of the start of the work to assure that the project will proceed on schedule. Final payment cannot be demanded until the contract is completed to the satisfaction of all parties.
  7. Signatures of all parties.
  8. A clear and conspicuous notice stating:
  9. An enumeration of such other matters upon which the owner and contractor may lawfully agree.
  10. Any other provisions otherwise required by the applicable laws of the Commonwealth.
  11. A clause informing the owner about:
  12. Acceleration of payment: No contract can contain an acceleration clause that would require any part or all of the balance not yet due to be declared due and payable because the contractor deems himself to be insecure. 
  13. A sentence explaining that no work can begin prior to the signing of the contract and the owner receiving a copy of the contract.

Chapter 142A does not require that an arbitration clause be included in the contract. However, if the contractor wishes to initiate arbitration, this provision must be in the contract, and must be clearly set out, and separately signed by both the homeowner and contractor. The following language is acceptable:  “The contractor and the homeowner hereby mutually agree in advance that in the event that the contractor has a dispute concerning this contract, the contractor may submit such dispute to a private arbitration service which has been approved by the Office of Consumer Affairs and Business Regulation and the consumer shall be required to submit to such arbitration. NOTE: The signatures of the parties above apply only to the agreement of the parties to alternate dispute resolution initiated by the contractor. The owner may initiate alternative dispute resolution even where this section is not signed separately by the parties.

Homeowners and contractors with questions about the Home Improvement Contractor program, should contact the Office. 

Additional Resources

[MARYLAND] File a Complaint – Home Improvement Commission

A complaint may be filed against a contractor or a salesperson. If violations of the Home Improvement Law are found after investigation, regulatory or criminal charges may be filed. There is no monetary award for homeowners in the complaint process. If a licensed contractor was used, the homeowner may be compensated for actual losses through the Guaranty Fund claim process.

TO FILE A GUARANTY FUND CLAIM

There is a form, separate from the complaint form, which must be filed with the Commission for compensation from the Guaranty Fund. The Fund does not apply to salespersons, or unlicensed contractors. A claim must be filed within three years of the date of discovery of loss or damage caused by a licensed contractor.

To obtain a claim form, contact the investigator who is assigned to your complaint.

NOTICE TO GUARANTY FUND CLAIMANTS

  1. Under the Home Improvement Law, the Claimant has the burden of proof at the hearing before the Administrative Law Judge. This means that it is the responsibility of the Claimant to present the evidence to prove that he/she is entitled to a monetary recovery from the Guaranty Fund.
  2. The Administrative Law Judge will consider only evidence that is presented at the hearing. The Administrative Law Judge does not have letters photos, bills etc…which the Claimant may have provided to the Commission staff during the investigation of the complaint. If the Claimant wishes the Administrative Law Judge to consider such items, it is the responsibility of the Claimant to introduce them into evidence at the hearing.
  3. In some cases, as part of its investigation of the complaint, the Commission may have hired an independent expert to inspect the Claimant’s property and prepare a written report. The Claimant should be aware that the Commission’s expert inspector does not appear at the hearing to testify, unless called as a witness by one of the parties to the case. The Claimant should also be aware that “expert” witnesses, such as a professional home inspector, who are called to testify about their professional opinions, are entitled to be compensated for their time. If the Claimant wishes to have the Commission’s expert testify at the hearing, it is the responsibility of the Claimant to contact the expert in advance of the hearing, and make all necessary arrangements with the expert, including arrangements for payment of any fee.
  4. The Claimant should be aware that, if he/she attempts to introduce a written inspection report into evidence at the hearing, without the expert present to testify, it will be up to the discretion of the Administrative Law Judge whether to admit the report into evidence, if the expert is not present to testify and not subject to cross-examinations, the Administrative Law Judge may give the report less weight than if the expert is present.

Even if the Commission has hired an expert inspector to inspect the Claimant’s property, the Claimant has the right to hire his/her own expert to inspect the property and to testify on the Claimant’s behalf at the hearing.

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[SOUTH CAROLINA]  EXCERPT”To be eligible for licensure, applicants must pass a technical exam (when required), a business management/law exam and be able to document two (2) years of experience within the last 5 years for the classification(s) of work in which you are applying. sue in South Carolina

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