HIC Homeowner Resources

Remodeling your home can be a massive undertaking. If you don't know your rights or understand how the Home Improvement Contractor (HIC) program works, you could face costly problems and become ineligible for help from the state.

Contractors, subcontractors, partnerships, or corporations that solicit, bid on, or perform contracting work in Massachusetts on an existing, owner-occupied residential property with one to four units, must be registered as a Home Improvement Contractor (HIC).

New construction, buildings with more than four units, investment, vacation or secondary properties and homes not located in Massachusetts are not covered under this law.

Why Hire a Registered Home Improvement Contractor?

Registered contractors must follow the law which provides industry standards and helps protect consumers.

Under the Home Improvement Contractor (HIC) law, registered contractors must follow requirements regarding contracts, payments, advertising, business practices, and more. These laws and regulations provide standards throughout the industry and provide protections for homeowners.

If you hire an unregistered contractor and a problem arises with the contractor's work, you will:

• Not be eligible to seek arbitration through the Office of Consumer Affairs and Business Regulation (OCABR).
• Not be eligible to apply for or seek money through the Guaranty Fund.
• Still be able to still file a complaint.

Important Note
Filing a complaint against any contractor will not result in a monetary award for the homeowner, but it may result in disciplinary action being taken against the contractor.

How are Construction Supervisor Licenses (CSL) and Home Improvement Contractor (HIC) Registrations Different?

Whether your contractor is required to have both a CSL and an HIC depends upon the scope of work and the construction they intend to perform.

A CSL: 

• Requires that a licensee pass an examination which demonstrates knowledge of the state building code.
• Is generally required for any work that involves a building's structural elements.

A HIC: 

• Registrant is not required to pass an examination.
• Requires registration with the state by paying an application or renewal fee, plus a one-time fee to the Guaranty Fund.

What Work Requires a HIC Registration, CSL License, or Building Permit? 

Hiring a Contractor

Selecting a contractor is the most important part of the home renovation process. 

Before hiring a contractor, you should:

• Interview at least three contractors.
• Request a written, detailed estimate.
• Check the HIC registration status and history (such as complaints) of the contractor or subcontractor by using the MA Contractor Hub search tool.
• Request to see the HIC identification card that the state issues to all registered contractors.
• Ask the contractor for proof of liability insurance and workers’ compensation insurance (if applicable).
• Look for a HIC registration number on the contractor’s website or advertisements.
• Ask for references in writing for the contractor’s three most recent projects with names and telephone numbers of the homeowners.
  • Contact the homeowners for information on the contractor.
• Check with the Office of Public Safety and Inspections and the Better Business Bureau to see if the contractor has complaints or disciplinary action on file.
• Confirm that the CSL status of the contractor or subcontractor is current, if your renovations will require a CSL.

If you can’t find the contractor listed at the MA Contractor Hub, it may be because the:

• HIC registration is expired.
• Contractor has a complaint on file that has not yet been adjudicated.
• Contractor has not paid the registration fees.
• Registration has been suspended or revoked because of a hearing officer's decision.

If you discover that a contractor is not registered, email [e-mail].  

Important Note
If the contractor or subcontractor is not registered, you will not be protected by the Home Improvement Contractor Law. However, you may be able to pursue action against an unregistered contractor through the court system.

Not all home improvement work requires that a contractor have a HIC registration, including: 

• Installers or providers of:
  • Central heating and air conditioning
  • Energy conservation devices (except solar panels)
  • Landscaping
  • Interior painting
  • Wall and floor coverings
  • Fencing
  • Freestanding masonry walls
  • Above ground pools
  • Shutters and awnings
  • Ground level patios
  • Driveways
• Architects, electricians, plumbers and others who provide services that are exclusively within the scope of their licensed professions.
• Some part-time and small jobs under $500.
• Public or private schools offering home construction or home improvement courses and training as part of a vocational education program.
• Persons selling goods or materials.
• “Do it yourself” (DIY) homeowners conducting residential contracting work in their own home.
• Individuals who do not act in the capacity of a home improvement contractor or subcontractor but perform construction-related labor or service for an HIC or subcontractor for wages or salary.

Check a contractor's HIC registration  Check a contractor’s CSL status 

Signing a Contract

A contract helps protect homeowners and is required should you need to request HIC arbitration or seek relief from the Guaranty Fund.

Always ask for a detailed written contract, even for small projects, because it will protect you and ensure that you and the contractor understand the job scope and price. State law requires that home improvement contracts over $1,000 be in writing.

Before signing a contract, be sure:

• It outlines the breakdown of costs, the project details and schedule, and when payments are due.
• The registered contractor agrees to pull the building permit and any other necessary permits.
  • If you apply for the building permit, you may not be eligible for compensation from the Guaranty Fund.
  • The building permit card must be posted at the job site until completion.
  • If a contractor refuses to apply for the building permit, this may indicate that he or she is unregistered.
• You only agree to pay no more than one-third the total job cost up front.
  • By law, the contractor cannot collect more than one-third of the cost of the contract in advance, unless special order materials are needed.
• You never agree to financing from the contractor.
  • If you need a loan for home improvements, get a cost estimate from the contractor, and shop around for the best financing option.
  • By law, contractors are not allowed to lend you money, or act in association with any lending institution if the loan is secured by a mortgage on your home.
  • A contractor cannot offer you financing with a specific lender if your home is used as collateral.

Important Note
If contractors violate a contract, their registration may be suspended or revoked, and they can be fined or face criminal prosecution.

Home Improvement Contract Requirements, Details, and Sample Language 

Handling Disputes

If you have a contract dispute or if you think that the job was not performed in a professional manner, you have options like mediation, arbitration, or court.

Mediation allows both parties to reach a mutually agreeable resolution with the help of a facilitator. Mediation is:

• Voluntary.
• Requires both parties' consent.
• Available through your local consumer group, which is affiliated with the Attorney General's Office.

Arbitration is when a neutral third party, the arbitrator, listens to both sides of the dispute, and decides whether to order the contractor to provide a refund for poor or unfinished work. All registered contractors must, by law, agree to arbitrate.

You may be eligible for state-approved arbitration under the Home Improvement Contractor Arbitration Program if you can prove that:

• There was a written contract for the job that meets a minimum dollar amount.
• The contractor was registered at the time of the contract.
• The work was done on a one-to-four family, owner-occupied, primary residence in Massachusetts.
• Your contractor pulled the building permit.

Legal Action is available by pursuing your claim through the court system. You should seek legal advice for all claims:

• For claims under $7,000, small claims court is the least costly alternative.
• Larger claims may be more suitable to District or Superior Court. 
• As a first step, you or your attorney will need to send the contractor a 30-day demand letter.
• If you win your case in court, you may receive your actual damages or $25, whichever is greater.
• If the court finds that the contractor's violation was willful or knowing, then the court may award at least double damages.
• You may also be awarded attorney's fees, unless you rejected a reasonable settlement offer made by the contractor within 30 days of the mailing of your 30-day demand letter.

Tip: If you win your case in arbitration or in court and the contractor fails to pay the award or judgment, you can apply to the Home Improvement Contractor Guaranty Fund for up to $25,000 of your actual losses if you meet eligibility requirements.

Filing a Complaint

Filing a complaint against any contractor will not result in a monetary award for the homeowner, but it may result in disciplinary action being taken against the contractor after an enforcement hearing.  

The complaint process does not involve mediation or arbitration but may lead to an enforcement hearing with a contractor regarding violations of the home improvement contractor registration law. 

• After a complaint hearing, OCABR can fine a contractor up to $2,000 for each violation and/or suspend or revoke the contractor's registration.
• No money is awarded to homeowners who file complaints, even if fines are assessed.
• Homeowners can file a complaint against a contractor even if the contractor is not registered.