Massachusetts home improvement contract requirements: what must be in writing

Massachusetts home improvement contract requirements come from one law: M.G.L. c. 142A, section 2. Any job over $1,000 needs a written contract with specific terms and notices. Below is the list I check every contract against before my clients in Somerville and Cambridge sign.

The law covers work on pre-existing, owner-occupied homes with one to four units, per section 1. That is most single-families, two-families and owner-occupied triple-deckers in Greater Boston.

Massachusetts home improvement contract requirements: the 10 items

Section 2 lists what every written contract must contain:

1. The complete agreement, with a clear description of any other documents that are part of it (plans, specs, allowances).
2. Full names and street addresses of both parties (no P.O. boxes), the contractor's registration number, any salesperson's name and the date signed.
3. The start date and substantial completion date.
4. A detailed description of the work and materials.
5. The total price.
6. A payment schedule in dollars, including any finance charges. The deposit cannot exceed one-third of the price or the cost of special-order materials, whichever is greater.
7. Signatures of all parties.
8. The required notices (next section).
9. Any other lawful terms you agree on, as long as they do not waive your rights.
10. Anything else Massachusetts law requires.

OCABR, the state office that runs the Home Improvement Contractor program, adds that the registration number must appear on the first page. Its contract requirements page also has a free sample contract. If a contractor hands you a one-page estimate with a signature line, compare it to this list before you sign anything.

The notices every contract must include

• A notice that contractors and subcontractors must be registered, with where to send questions about registration.
• Your three-day cancellation rights.
• Any warranties and your rights under the law.
• Any lien or security interest on your home created by the contract.
• Directly above the signature line, in at least 10-point bold type: "Do not sign this contract if there are any blank spaces."

Your 3-day right to cancel

If you sign anywhere other than the contractor's place of business, such as your kitchen table, M.G.L. c. 93, section 48 lets you cancel:

• Until midnight of the third business day after you sign.
• By written notice mailed or delivered to the contractor's business address.
• The seller must refund your payments within 10 business days of getting your notice.
• A service provider cannot start work during those three days.

The contract must include a cancellation notice form you can tear off and send. Use it if you feel rushed. A good contractor will not mind you taking the full three days to read every page, ask questions and compare bids.

Permits and the Guaranty Fund clause

Section 2 also requires the contractor to tell you which permits are needed and that the contractor must pull them. The contract must warn that owners who pull their own permits are excluded from the state Guaranty Fund. My Somerville building permit guide explains how permits work in the city.

Other protections after you sign

• Signed copy first. You get a fully signed copy at signing, and no work may begin before that.
• No acceleration clause. A contractor cannot call the whole balance due because they feel "insecure." They can ask for the unpaid balance to go into a joint escrow account.
• No surprise final bill. Final payment cannot be demanded until the work is complete to the satisfaction of the parties.
• Arbitration is optional. A contractor arbitration clause must be clearly disclosed and separately signed and dated by both sides.
• Missing items are a violation. Section 2 says a non-compliant contract is not automatically invalid, but leaving required items out still breaks the law.

What I add beyond the legal minimum

The law sets the floor. In my contracts I also spell out:

• Allowances for finishes you have not picked yet, with dollar amounts.
• A written change order process: no extra work without a signed price first.
• Lead-safe work for homes built before 1978, which the EPA's RRP program requires from certified firms. More in my lead paint guide.
• Site rules: work hours, parking, dust protection and daily cleanup.

Need a hand?

Every Magno & Co contract follows Chapter 142A, with our HIC number on page one and a clear scope. Book a free walkthrough and I will send a written line-item budget, usually within 48 hours.

Want someone on your side? See what I do as an owner's representative and how I price work.

About the author

Mateus Magno founded Magno & Co in 2020. He is a licensed Massachusetts Construction Supervisor (CS-123658), registered Home Improvement Contractor (HIC #220484) and certified Lead-Safe Renovator Supervisor who has renovated and managed over $5 million in projects across Greater Boston.

More about Mateus →