The Massachusetts Contractor Guaranty Fund, and Why Registration Matters

What the fund is

Massachusetts operates a Home Improvement Contractor Guaranty Fund through the Office of Consumer Affairs and Business Regulation. It exists to compensate homeowners who win a judgment against a registered contractor and cannot collect it, up to a statutory cap per claim.

It is funded by fees that registered contractors pay when they register and renew. That detail matters, because it is the reason the protection does not extend to contractors who never registered.

The part most homeowners do not know

If you hire an unregistered contractor, you are not covered. Not partially, not at a reduced amount. The fund is unavailable to you entirely, no matter how strong your case or how clear the failure to perform.

This is the single strongest practical argument for checking registration before you sign anything, and it costs nothing to check.

Registration is not the same as a licence

• Home Improvement Contractor registration (HIC). Issued by the Office of Consumer Affairs. This is what connects to the Guaranty Fund. It is a registration, not a competency test.
• Construction Supervisor Licence (CSL). Issued by the Board of Building Regulations and Standards. This one does require examination and is what allows someone to pull building permits for structural work.
• Trade licences. Plumbing and electrical work must be performed by separately licensed tradespeople in Massachusetts, regardless of who holds the general contract.

A contractor can hold one and not the others. For a full bathroom remodel you want to see both the HIC registration and the CSL, plus confirmation that licensed trades are doing the plumbing and electrical.

How to check

1. Ask for the HIC registration number and the CSL number in writing
2. Verify them against the state registries rather than taking a business card at face value
3. Ask for a current certificate of insurance sent directly from the insurer
4. Confirm the written contract includes the registration number, which Massachusetts requires

What a compliant contract looks like

Massachusetts sets requirements for home improvement contracts above a threshold value: they must be in writing, signed, include the registration number, set out a payment schedule, and include specific notices about your rights. A handshake and a number on a napkin is not a contract, and it removes your route to the fund.

Where we stand

Our HIC registration and Construction Supervisor Licence numbers are on every contract and on this website. We would rather you check them than take our word for it.