Paying the Contractor and the Law

When you decide to hire a home improvement contractor, of course, he or she needs to get paid.  Massachusetts law Chapter 142A says several things about payment:

1.  A contractor cannot ask for more than 1/3 up front, unless there are special order items involved;
2.  A contractor cannot demand final payment until the project is completed to the mutual satisfaction of the parties;
3.  The contract must be in writing if it is in excess of $1,000 and must state the total amount agreed to be paid for the work performed; and
4. The contract must list a schedule of payments.

When you decide to undertake a home improvement project, make sure that your payment schedule is clear.  It may be a good idea to tie payments to completion milestones, such as when the framing is done or the floors installed.  Payments tied to a percentage completion can be murky and subject to disagreement. 

Make sure you are comfortable with the payment terms before you sign on the dotted line.

10 Years and Counting . . .

Ten years ago today, Tanowitz Law Office, was born.  In the past decade, the firm has grown from one person to three and we have moved offices 3 times.  Then years ago, I had a three year old and a three month old.  Now I have -- gasp -- a thirteen year old, a ten year old and as a bonus a nearly eight year old.  We look forward to many more years of helping people in the areas of home improvement disputes, landlord tenant issues, commercial collections and general business litigation.

How to Pick the Right Home Improvement Contractor

While winter is still upon us (despite the mild weather), now is the time when many people are planning a warm weather renovation.  If you fall into this category, before you hire a home improvement contractor, here are some things to think about before you sign on the dotted line.

• First, ask friends, family, colleagues, and neighbors for referrals. Receiving a referral from someone you know is often the best way to find the best person to do the job.
• Once you receive the referrals do not accept them without doing your own homework.  If your neighbor needed her half-bath redone and you want to add a huge addition, her contractor may not be the right one for you.  Some contractors specialize and you don't want to hire a kitchen and bath person if you plan on gutting the interior of your home.
• Don't just ask for references from the contractor. Rather, ask the contractor for the names of the last 3 projects he has completed or is presently working on. Also, ask to visit one or more of his current work sites. 
• Make sure your contractor is registered and licensed as a construction supervisor. A construction supervisor is licensed by the state and is required to take an examination.  Making sure your contractor is a registered HIC is the first step to being able to collect from a guaranty fund set up by the Commonwealth.  
• Make sure your contractor has insurance—worker’s compensation and comprehensive general liability for certain and errors and omissions if your contractor can find such a policy.  You may want to consider finding out whether you can purchase a rider to your own policy for a nominal cost. That way, if something goes wrong you will at least be reimbursed. The insurance companies can then fight out who ultimately pays the claim, not you.
• Seriously consider having a lawyer draft or review a contract for you.  There are many provisions which should be included and others which must be included as a matter of law.  

You can hear me talk more about hiring a home improvement contractor on March 29 at 7 pm at my office.  You can sign up here:  http://www.eventbrite.com/myevent?eid=2943609415