Code of Massachusetts Regulations › 201 CMR - OFFICE OF CONSUMER AFFAIRS AND BUSINESS REGULATION › Title 201 CMR 18.00 - REGISTRATION AND ENFORCEMENT OF HOME IMPROVEMENT CONTRACTOR PROGRAM › Section 18.01 - General Provisions

Current through Register 1525, July 5, 2024
(1)
Title
.
			 201 CMR 18.00 is authorized
			 and promulgated by the director of the Office of Consumer Affairs and Business
			 Regulation under the authority of M.G.L. c. 142A.
(2)
Definitions
.
Advertisement.
Any commercial message
				in any newspaper, magazine, leaflet, flyer, catalog, display space in the
				telephone book, on radio, television, or other electronic media, including but
				not limited to, web pages from websites, web ads, mobile applications, listing
				sites, and public address system, or made in person, by letter or other printed
				material, or any interior or exterior sign or display, including on a vehicle,
				which is delivered or made available to an owner by a registrant or a
				contractor required to be registered in any manner whatsoever.
(See
201 CMR 18.01(2):
Owner
.)
Applicant
. Any person who files an
				application to become or continue to operate as a registered home improvement
				contractor or subcontractor.
Application
. The form provided by the
				director which, along with other documentation and fee(s) that may be required,
				must be duly filed to become or continue to operate as a registered home
				improvement contractor or subcontractor.
Certificate of Registration
. The card
				or other document provided to a registrant that lists the registrant's
				registration number and other identifying information required by the director.
				(
See
201 CMR 18.01(2):
Registrant
.)
Clear and Conspicuous
. The material
				representation being disclosed is of ten-point type and is so presented as to
				be readily noticed and understood by a reasonable person. Language in the body
				of a contract is "conspicuous" if it is in larger or contrasting type or color,
				or underscored.
Contract
. A written agreement between
				a home improvement contractor and an owner contained in one or more documents
				for the performance of certain residential contracting work, including all
				labor, material, goods and services set forth under said agreement for a total
				amount exceeding $1,000.00.
Contractor
. Any person who, through
				himself or others, undertakes, offers to undertake, purports to have the
				capacity to undertake, or submits a bid for residential contracting work.
				(
See
201 CMR 18.01(2):
Home Improvement
				Contractor
.)
Director.
The Director of the Office
				of Consumer Affairs and Business Regulation.
Employee
. For the purposes of
				201 CMR 18.00 determining the
				number of employees of an applicant for registration, any individual engaged in
				construction related activities who, in the weekly pay period prior to the date
				of registration worked 20 or more hours for the registrant and for whom the
				registrant withheld or was required to withhold federal or state income taxes
				and who, during the same pay period, was not otherwise paid or had such taxes
				withheld by any other registrant. Included would be all construction workers,
				supervisors, sales personnel, designers, estimators, active partners and
				officers of corporations.
Fund
. The Residential Contractor's
				Guaranty Fund. (
See
201 CMR 18.01(2):
Guaranty
				Fund
.)
Fund Administrator
. The administrator
				of the Residential Contractor's Guaranty Fund, appointed by the
				director.
Guaranty Fund
. The Residential
				Contractor's Guaranty Fund established pursuant to M.G.L. c. 142A.
Home Improvement Contractor
. Any
				person who owns or operates a contracting business who, through himself or
				herself or others, undertakes, purports to have the capacity to undertake,
				offers to undertake, or submits a bid for residential contracting work to an
				owner, as such work is defined in
				201 CMR 18.00 and M.G.L. c.
				142A, and such work for each project is in a total amount in excess of $1,000,
				and is registered or required to be registered in accordance with M.G.L. c.
				142A and
				201 CMR 18.00.
Homeowner.
See
201 CMR
				18.01(2):
Owner
.
Local Consumer Group
. A local or
				regional agency which deals with the resolution of consumer problems and is
				determined eligible by the attorney general under standards set by the attorney
				general in accordance with M.G.L. c. 12, § 11G.
Mortgage Broker
. Any person, who, for
				compensation or gain, or in the expectation of compensation or gain, directly
				or indirectly negotiates, places, assists in placement, finds or offers to
				negotiate, place, assist in placement of mortgage loans on residential property
				for others, or as otherwise defined in M.G.L. c. 255E.
Mortgage Lender
. Any person engaged in
				the business of making mortgage loans, or issuing commitments to fund mortgage
				loans, or accepting applications or fees associated with the making of mortgage
				loans which are secured by a mortgage on residential property, or as otherwise
				defined in M.G.L. c. 255E.
Mortgage Loan
. A loan to any person
				made primarily for personal, family, or household purposes, secured wholly or
				partially by a mortgage on a residential property, or as otherwise defined by
				M.G.L. c. 255E.
OCABR.
The Office of Consumer Affairs
				and Business Regulation.
Owner
. Any homeowner of a building
				which is an existing building at the time of a contract that is owner-occupied,
				containing at least one but not more than four dwelling units, or a tenant
				authorized by the homeowner thereof, who orders, contracts for, or purchases
				the services of a contractor or subcontractor. An owner occupying a condominium
				unit in a building containing no more than four dwelling units qualifies as an
				owner under 201 CMR 18.01(2):
Owner
, provided the
				owner owns a total of not more than four condominium units. A condominium
				association does not qualify as an owner.
Owner-occupied.
The residential
				building of at least one but not more than four dwelling units and occupied by
				the owner as a primary residence.
Permit
. For the purposes of
				201 CMR 18.00, any
				construction-related permit, excluding any permits required by the owner which
				are not considered construction-related, such as zoning, environmental,
				historical commission, and the like.
Person
. Any individual, partnership,
				corporation, society, trust, association, or any other legal entity.
Registrant.
Any duly registered home
				improvement contractor or subcontractor.
Registration Number
. The number
				assigned to the applicant after approval for registration by OCABR.
Residential Contracting
. The
				reconstruction, alteration, renovation, repair, modernization, conversion,
				improvement, removal or demolition or the construction of an addition to any
				pre-existing owner-occupied building containing at least one but not more than
				four dwelling units, which building or portion thereof is used or designed to
				be used as a residence or dwelling unit, or to structures which are adjacent to
				such residence or building, including, but not necessarily limited to: garages,
				sheds, cabanas, pool houses, gazebos.
Salesperson.
Any person, other than a
				supplier of materials or a laborer, who solicits, offers, negotiates, executes,
				or otherwise endeavors to procure by any means whatsoever, directly or
				indirectly, a contract for residential contracting services from an owner on
				behalf of a home improvement contractor or subcontractor.
Subcontract.
A contract, written or
				verbal, in any amount, between a home improvement contractor and a
				subcontractor or between two subcontractors for the performance of any part of
				the home improvement contractor's or subcontractor's contract.
Subcontractor
. Any person, other than
				a supplier of only materials, who enters into a contract, written or verbal,
				with a home improvement contractor for the performance of any part of a home
				improvement contractor's contract with an owner for residential contracting, or
				who enters into a contract with any other subcontractor for the performance of
				any part of the subcontractor's contract.
Supplementary Identification Card
. The
				document issued upon the written request of the registrant to a third party, by
				which the registrant acknowledges that the third party holder is acting as an
				agent of the registrant.
(3)
Scope
.
(a) M.G.L. c.
			 142A and
			 201 CMR 18.00 require the
			 registration of persons who engage in residential contracting work as defined
			 in
			 201 CMR 18.00 and M.G.L. c.
			 142A and define the requirements of M.G.L. c. 142A and enforcement of
			 201 CMR 18.00 and M.G.L. c.
			 142A, as they pertain to home improvement contractors and
			 subcontractors.
(b) Except for
			 those persons who are specifically exempt from the provisions of
			 201 CMR 18.00 and M.G.L. c.
			 142A, all contractors and subcontractors who engage in residential contracting
			 as defined in
			 201 CMR 18.00 and M.G.L. c.
			 142A shall be subject to and shall comply with
			 201 CMR 18.00 and M.G.L. c.
			 142A.