Business Law, Contracting, and Consumer Protection
Registration and the contract
Residential roofing is home improvement work under M.G.L. c. 142A. The contractor needs Home Improvement Contractor registration from OCABR and must put the registration number on contracts, advertising and permit applications. A written contract is required and must give the homeowner a three-business-day right to cancel, describe the work and materials, state the total price and payment schedule, and disclose the registration. The Attorney General's home improvement regulations (940 CMR 3.16) police excessive deposits, deviations from the contract, abandonment, and demolition without a permit.
When things go wrong
- A c. 93A demand letter must precede suit; a willful or knowing violation can bring multiple damages and attorney's fees.
- The Home Improvement Guaranty Fund can satisfy certain unpaid judgments against registered contractors; unregistered contractors lose that protection and face per-violation penalties.
- Mechanics liens under M.G.L. c. 254 run on strict deadlines: a Notice of Contract and later a Statement of Account recorded at the Registry of Deeds, with shorter rules for owner-occupied one- to four-family homes. Miss the date and the lien is worthless.
- On public work, lien rights are replaced by the payment bond claim under c. 149.
- Worker classification uses the ABC test of c. 149 section 148B; a roofer paid as a sub who works under your direction is an employee, and c. 152 workers' compensation must cover employees.
Worked example
A $28,000 tear-off; the owner withholds the final $6,000 over shingle color. Without a written contract, signed change orders, and a 93A demand letter, the contractor's position is weak - and if no Notice of Contract was recorded, the lien is already gone.
Traps
Handshake deals, contracts missing the cancellation notice, and assuming lien rights work on a municipal job.