Residential Construction Problems in Connecticut
Are you in the middle of a construction project or just thinking about one? Is your contractor licensed? Does the construction contract contain all the information required by Connecticut state law? With all the construction going on in Fairfield County, it’s important that you review these issues to ensure that you, the homeowner, are protected in the event your project fails.
In Connecticut, both new home builders and home improvement contractors must be licensed. There are separate and distinct licenses for each and both are licensed by the Department of Consumer Protection (“DCP”). However, having either license does not mean that the builder/contractor has done more than fill out the proper paperwork and pay the required fees. The license is not an endorsement by DCP that the builder or contractor does a good job or maintains adequate insurance. According to the DCP, the definition of “Home Improvement” is “any permanent change to residential property, including, but not limited to, driveways, pools, porches, garages, roofs, siding, insulation, solar energy systems, flooring, patios, landscaping, painting, radon mitigation, removal of residential underground oil tanks, fencing, doors, windows, and waterproofing, unless the contracted work is worth less than $200.00.” A “New Home Construction Contractor” is any person or business that builds speculative housing or contracts with a consumer to build or sell a new home or builds any part of a new home prior to occupancy.
To check if your new home builder or renovation contractor is licensed, you can visit the DCP website at http://www.ct.gov/dcp and click on the Home Improvement tab. An important benefit of using a registered new home builder or renovation contractor is that DCP administers the “New Home Construction Guarantee Fund” and the “Home Improvement Guarantee Fund.” These funds are available to compensate consumers who are unable to collect for loss or damage suffered as a result of a breach of contract by a registered contractor. The maximum recovery from the Home Improvement Guarantee Fund is $15,000.00 and $30,000.00 from the New Home Construction Guarantee Fund. There are specific requirements for the collection of each of the funds and you should contact DCP or an attorney knowledgeable in construction law to ensure that you meet all requirements.
Once you determine that your home improvement contractor is licensed, you must ensure that the contract contains all the required information. Connecticut law requires the following of a home improvement contract: (1) It must be in writing, including all changes and modifications; (2) You must include four dates: the date the contract is signed, the date the work will begin, the date the work will be completed, and the date the owner can cancel the transaction; (3) You must include a Customer Notice of Right to Cancel within three business days of signing the contract. The Notice must be attached to and form part of the contract, and must be in duplicate; (4) The notice contained in the contract must be near the customer’s signature and substantially as follows: “You, the buyer, may cancel this transaction at any time before midnight of the third business day after the date of this transaction. Please see the attached cancellation notice for an explanation of this right.” NOTE: Saturday is a legal business day in Connecticut; (5) Both the contractor and the client must sign and date the contract; (6) The contractor must give the client a complete copy of the contract to keep; (7) The contract must be entered into by a registered contractor or vendor; and (8) Must contain the name and address of the contractor.
If you are building a new home, once you determine that your new home contractor is licensed, you must ensure that the contract contains all of the required information. The new home contract must contain a provision that tells you that other prospective clients of the contractor may contact you regarding the quality and timeliness of the contractor’s new home construction work. You can then inform the contractor in writing at the time of contract performance that you do not want them to contact you.
If your contractor refuses to enter into a qualifying contract, you should find another contractor.
It is recommended that you do not give your contractor cash advances or large advance payments. You and your contractor must agree on a payment schedule that roughly follows the progress of the work (ie, 20 percent progress payments each time the work reaches predetermined levels of completion). It is never advisable to provide final payment until the job is complete.
Finally, Connecticut law provides certain express and implied warranties for new home construction. You should contact DCP or an attorney knowledgeable in construction law if you have a new home warranty issue.
