Requirements for a Home Improvement Contract

As we have posted before, when you undertake a home improvement project -- a renovation, an addition, finishing a basement -- the contract between the homeowner and the contractor is likely covered by Chapter 142A.  Chapter 142A has some specific requirements for contracts.  In this post, we are going to focus on the requirement that the contract include a detailed description of the work to be performed and the materials to be used.

What does that mean?  It means that the contractor must tell you exactly what materials he or she plans to use.  For example, the contract should specify the brand of paint and the specific product line - Benjamin Moore paint, Aura line or Sherwin Williams paint, ProMar 200 line (the listing of any product or brand is not an endorsement, merely exemplary).   The contract should not just specify the finishes, but also the materials that you won't see, like insulation. You should know the R value -- the higher the R value the better an insulator -- of the insulation, whether a water/vapor barrier, like Tyvek is being used on your project.  When a contract complies with this statutory requirement, the contractor can properly estimate the cost and the homeowner can understand exactly what they are getting.  If the contract specifies American Standard bathroom fixtures, then there will not be a misunderstanding about what type of faucet was installed. If the homeowner wants Kohler faucets, they must speak up and work out any price differential with the contractor.  At the same time, the contractor can provide an allowance based on that specification and kept its costs managed.  In short - the more detail the better.  It minimizes misunderstandings about what is being done and used on the project.

The detail required for the scope of the work is no different.  The requirement is for the benefit of both sides. The homeowner should know, for example, whether interior walls are being insulated. If they are, then the contractor must calculate that into its costs as it prices the job.  If the scope of work does not include such an entry, then the homeowner can ask about it and tell the contractor that they want the insulation to reduce noise.

The lack of details and hence, misunderstanding from the start of the job.  By complying with the law, both sides are protected and understand what is being provided.

Are Housemates the Solution to Lowering your Housing Costs?

Massachusetts housing costs are very expensive -- rent is expensive and the prospect of buying a home may seem completely out of bounds if you are single or on a limited income.  Lately, we've been working with people who have tried to manage their housing costs by purchasing a property and renting rooms in their home out to others.  While this can be a great way to offset some housing costs, there are some things you must consider.

• How many rooms are you renting out?  Many cities and towns have zoning rules which consider a residence who has 4 or more unrelated people living together (including the owner) to be a rooming house.  Rooming houses have zoning and other restrictions.  Check with your municipality to determine the rules.

• Have a written agreement.  Not only should the lease include typical terms like the duration of the lease and the amount of rent, but include lifestyle rules.  Are pets allowed?  What about quiet hours?  What are the rules regarding the kitchen?  Does everyone need to have their own ketchup or can food be shared?  When you are renting an apartment or a house, these things may not be as important (or may be completely irrelevant).  However, when you are sharing your house or condominium with someone, you need to consider what your day-to-day interactions are going to look like.  You should also consider how the relationship ends.  It might make sense that you or the other person can end the tenancy with 30 days' notice.  While it diminishes certainty of income, it gives you the freedom to terminate a lease with a housemate who just is not working out.

• Be up front with prospective housemates.  If you host a dinner every Wednesday with your friends and they stay until 11 pm each week, then say so. If you want only to rent to vegetarians, be clear in your advertisement.

• Be prepared to be a good housemate yourself.  Think of housemates as permanent visitors. If you share your house with others, you must also be a considerate resident.  

• Make sure you handle any last month's rent and security deposit correctly.