HARTFORD – The Department of Consumer Protection (DCP) is reminding the public that before starting a home improvement project with a registered home improvement contractor, you should have a clear contract that details the work to be completed, outlines a timeline for the project, and establishes a payment schedule that aligns with the project’s progress.
DCP receives an average of 1,000 complaints every year related to home improvement. Complaints range from working with unlicensed individuals to poor or incomplete projects. Last year, there were 265 complaints regarding unregistered contractors. In 2024, DCP received 60 complaints regarding deposits, where consumers provided funds, but no work was performed.
“We know that when spring starts, homeowners are eager to begin their home improvement projects, which can be a costly and lengthy process,” said DCP Commissioner Bryan T. Cafferelli. “Before you hire, ask for trusted recommendations from people you know for contractors who have completed similar work to the project you are hiring for. In other words, don’t hire someone to remodel your bathroom who specializes in fence repairs. Ask for examples of their work, verify that work is theirs, and be sure to obtain at least three quotes before choosing a registered and qualified contractor. This is not a process that should be rushed. If a contractor is pressuring you to make a large deposit quickly, that’s a red flag. Legitimate contractors won’t ask you for more than one-third of the project cost up front, and they won’t pressure you to pay in an untraceable form of payment. These details and more should be outlined in a contract agreed to by both you and the contractor prior to the start of the project.”
Homeowners should always pay deposits through a traceable form of payment, such as credit card. If a legitimate contractor does not accept credit cards, the next best way to pay for home improvement work is with a check made payable to the name that appears on the registration.
Deposits should never be paid in cash or through peer-to-peer apps and consumers should avoid working with someone who demands the full payment upfront.
Home improvement projects are required to have a written contract before the project starts. Homeowners can use “CATER” as a checklist of items to include in the contract:
- Credential: The contract lists the Contractor’s Registration (HIC) number. That number should be verified using elicense.ct.gov to check that the contractor has an active registration with DCP.
- Abstract: The contract summarizes the project description, the changes that will be made to the property, and the necessary materials. If there are any changes to the contract, they must also appear in writing.
- Timeline: It states the project timeline: the date the contract was signed, when the work will begin, when the work will be completed, and the date on which the homeowner may cancel the contract.
- Expense: The contract describes the cost, the payment method, and the payment schedule. We recommend dividing the project payment into thirds: one-third for the deposit and initial materials costs, another third halfway through the project, and the final third when the project has been completed. Payments should correspond with the project’s progress.
- Right to Cancel: The contract includes a Notice of the Customer’s Right to Cancel which is within three days of signing the contract. In Connecticut, Saturday is considered a legal business day. A customer can cancel any time up to midnight on the third business day. No work should be started during this “cooling off period.” A homeowner may sign a waiver, stating they waive their right to cancel, in the event of an emergency that requires the work to be completed immediately.
Before work begins:
- The contract must be agreed upon and signed by both the consumer and the contractor.
- Both parties must agree on who will obtain the building permit, if it is required for the project. If it is agreed that the contractor will pull the permit, homeowners should verify with their local building official that the appropriate permit has been obtained. Permits are an additional form of consumer protection, ensuring projects will be completed in accordance with the most up to date building codes.
- Consumers should ask their contractor for proof that they have general liability insurance coverage of at least $20,000. Consumers can call the contractor’s insurance company to verify that the policy is active and valid. A contractor unwilling to provide their insurance policy number and insurance provider is a red flag for consumers.
If a project with an actively registered contractor goes wrong, consumers may be eligible for the Home Improvement Guaranty Fund of up to $25,000.
For more information on home improvement projects and the best way to stay protected, consumers can visit DCP’s website.
To file a complaint regarding home improvement, consumers can email dcp.complaints@ct.gov or visit https://ct.gov/dcp/complaint.