Home Improvement Contracts The Basics

Connecticut's law offers protections for homeowners entering into contracts for home improvement projects. Below are some of the things you should know if you are about to sign a contract for home improvement, you just did or you are having trouble with a contractor who is already working on your home.

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Key Required Contract Terms for a Valid Home Improvement Contract

Failure to include these provisions in your contract may invalidate the contract and entitle you the home owner to cancel the deal. To be valid and enforceable a Home Improvement Contract must include:

1. Written Agreement: The contract must be in writing.

2. Signatures: Both the homeowner and contractor must sign it.

3. Complete Agreement: It should include all terms of the agreement.

4. Transaction Details: The date of the contract must be specified.

5. Contractor Info: The contractor’s name, address, and registration number must be included. This will be shown as HIC.0000000 (HIC "." followed by 7 digits). Verify a license here.

6. Cancellation Rights: The homeowner’s right to cancel the contract must be clearly stated, and you have three days to cancel without penalty.

7. Timeline: Start and completion dates for the project must be included.

8. Disclosure of Ownership: The contract must disclose if the contractor or their owners have had ownership in other contracting businesses in the last five years.

 

Changes to the Contract

 

Any changes to the terms must also be in writing and signed by both the homeowner and the contractor. The state can set exceptions for this through regulations.

 

What This Means for You as a Homeowner

Review contracts carefully to ensure they meet the above requirements.

Don’t sign anything that doesn’t include all necessary information, especially the cancellation terms and project timeline.

If the contractor pressures you or uses unclear terms, it may be a violation of this law.

If there’s a dispute, and the contractor didn’t meet all requirements, they might not enforce the contract. However, they may still claim payment for work if a court decides fairness requires it.

 

If you suspect your contractor has violated these provisions, contact Dunigan Law for advice.

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Additional Contract Considerations

In addition to the key terms above homeowners should be aware of the following 

 

Copy of the Contract

Contractors must give homeowners a copy of the signed contract at the time of signing, free of charge.

 

Prohibited Clauses

Contractors cannot include provisions that require homeowners to notify them by a certain date to cancel future work unless they also include a reminder system to notify homeowners 10–20 days before the deadline.

Contractors are not allowed to start or imply they will start work unless explicitly authorized by the homeowner. They cannot use pressure tactics like saying, “We’ll begin unless you say no.”

 

​Finance Terms

If the contract involves financing (like paying in installments or a contractor loaning money):

1. Disclosure: The contract must include clear disclosures per federal Truth-in-Lending laws.

2. Early Payment: Homeowners must be allowed to pay off the loan early and receive a partial refund of unearned finance charges.

3. Rate Limits: The finance charge must not exceed the legal limit for loans.

 

Enforcement and Recovery of Payment

Even if a contractor fails to fully comply with some of these requirements (like providing the entire agreement in writing), they might still recover reasonable payment for services requested by the homeowner, if denying payment would be unfair.

 

Home Solicitation Sales

Home improvement contracts are treated as home solicitation sales, meaning the homeowner gets extra consumer protections, such as the right to cancel the contract within a certain period.

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What if my Contractor goes out of business or can't be found?

The Home Improvement Guaranty Fund protects homeowners up to $25,000 when a contractor goes out of business or is otherwise unable to complete the work. In order to get access to the fund you must first file a lawsuit. Learn more here.