Protecting Yourself When Hiring Contractors

For immediate release from the Town of Merrimac Building Commissioner:
Consumer Advisory: Protect Yourself When Hiring Contractors
The Town has recently received multiple reports of residents paying 50% or more upfront for home improvement projects, only to find that the contractor does not return for months-or never begins the work at all. These practices put homeowners at significant financial risk and are not acceptable under Massachusetts consumer protection standards.
To protect your home and your hard-earned money, please follow these guidelines when hiring any contractor:

1. Upfront Payments Should Never Exceed One-Third (1/3) of the Contract Price
   Massachusetts law and industry best practices make clear that contractors should not request 50% or more upfront.
   A reasonable deposit is no more than one-third of the total project cost, paid only at the time you sign the written proposal or contract, that has a start date on it.
2. You Have a Three-Day Right to Cancel
   Under Massachusetts consumer protection law, homeowners have a three-day “cooling-off” period after signing a home improvement contract. If you experience buyer’s remorse of discover concerns abut the contractor, you may cancel within this period without penalty.
3. Never Allow Work to Begin Without a Permit in Hand
   Before any contractor starts work that requires a building permit, the homeowner should physically see the permit issued by the Town.
   A contractor saying “it’s in process” or “we applied” is not enough.
4. Be Cautious of Contractors Who Request Large Upfront Payments
   If a contractor demands 50% or more upfront, this is a major red flag
   Residents have reported situations where contractors take large deposits and then fail to show up, delay the project for moths, or stop responding entirely.

Thank you!
Building Commissioner, Bob Sinibaldi