Hiring a Contractor in Massachusetts: The License, the Deposit Rule, and the Three Things to Check Before You Sign

Massachusetts has some of the strongest homeowner protections in the country, and almost nobody uses them. Here is what to check in ten minutes, and the one rule about deposits that most homeowners have never heard of.

1. The HIC registration

Any contractor doing residential work over $1,000 on an existing one-to-four-family home in Massachusetts must be registered as a Home Improvement Contractor with the Office of Consumer Affairs. The number should be on their estimate, their contract, and their website. Look it up on the state's HIC lookup site; it shows whether the registration is active and whether there are complaints or arbitration findings. Ours is HIC #215304.

2. The construction supervisor license

Structural work, additions, and anything that needs a building permit requires a licensed Construction Supervisor (CSL) to pull the permit. Ask who is pulling the permit and under which license. If the answer is "you can pull it as the homeowner," that is a contractor avoiding accountability.

3. Insurance, in writing

General liability and workers' compensation. Ask for the certificate of insurance and check the dates. A worker injured on your property without workers' comp coverage can become your claim.

The deposit rule

Massachusetts law caps the deposit on a home improvement contract at one third of the total contract price, unless special-order materials are needed and the contract says so. A contractor asking for 50 percent up front is asking you to break state law in their favor. Progress payments after that should be tied to milestones, with the final payment due when the work is done and you have walked it.

What the contract has to include

By law, a Massachusetts home improvement contract over $1,000 must be in writing and include the contractor's HIC number, the full scope of work, start and completion dates, the total price, the payment schedule, a notice of your three-day right to cancel, and a statement about the Guaranty Fund. If any of those are missing, the contract is not compliant and you have leverage.

The Guaranty Fund

If a registered contractor does bad work and will not fix it, you can take them to state arbitration, and if you win and they do not pay, the Home Improvement Contractor Guaranty Fund can pay up to $10,000. That protection only exists if the contractor is registered. Unregistered contractors leave you with small claims court.

Three questions that tell you everything

1. Can I see your HIC number and your insurance certificate?
2. Who pulls the permit, and under whose license?
3. What is the payment schedule, and why?

A good contractor answers all three without hesitating. We put all of it in writing on every estimate because it protects both sides.