The Office of Consumer Affairs and Business Regulation administers the Residential Contractor's Guaranty Fund to compensate homeowners up to $10,000 for actual losses sustained by them as a result of the conduct of a registered contractor. The Guaranty Fund is a resource of the last resort for homeowners who have exhausted reasonable legal efforts to collect an arbitration award or a court judgment. A homeowner's actual loss may be different than the monetary arbitration award or court judgment issued to them. Actual loss is measured by one of the following calculations. Use the appropriate formula to determine the amount of your actual loss.
- Calculation When No Work Is Performed. If the contractor abandoned the contract without doing any work, the actual loss shall be the amount which the homeowner paid to the contractor under the terms of the contract.
- Calculation When Some of the Work Is Performed. If the contractor partially and properly completed some of the work which was agreed to under the terms of the contract, the actual loss shall be totaled by adding the amount of the reasonable cost of completing the contract and, if necessary, repairing the contractor's defective performance, and by subtracting the part of the contract price that has not been paid by the owner.