Everything you need to know about the Connecticut Home Improvement Act

Written By Sam Schlem

What is the Connecticut Home Improvement Act?

As a contractor and a home owner in Connecticut it’s extremely important you understand CHIA, (Connecticut Home Improvement Act), established under Chapter 400 of the Connecticut General Statutes, sets out the rules and requirements for home improvement contractors. Its aim is to ensure fair practices and shield consumers from fraudulent or substandard work.

What you need to know

Certificate of Registration (Sec. 20-420)

  • Contractors and salespersons MUST secure a certificate of registration from the Commissioner of Consumer Protection.

  • Requirements for registration include proof of liability insurance and, for specific tasks like radon mitigation, additional certifications.

Contract Requirements (Sec. 20-429)

  • All home improvement contracts must be written and signed by both the homeowner and the contractor.

  • Contracts must detail the contractor's registration number, the transaction date, total price, and start and completion dates.

  • Homeowners have the right to cancel the contract within three business days.

Home Improvement Guaranty Fund (Sec. 20-432)

  • This fund provides financial protection to homeowners by covering losses due to contractor misconduct.

  • Contractors contribute to this fund as part of their registration fee.

Enforcement and Penalties (Sec. 20-427)

  • The act specifies penalties for contractors who fail to comply with the regulations, including fines, suspension, or revocation of their registration.

  • The Commissioner of Consumer Protection has the authority to investigate complaints and take necessary actions.

Exemptions (Sec. 20-428)

  • Certain entities, like government agencies and vocational schools, are exempt from the act.

  • Licensed professionals working within their licensed scope are also exempt.

Compliance and Benefits

The CHIA is designed to benefit consumers, ensuring they receive high-quality services and are protected from unscrupulous contractors. Homeowners can waive compliance, but it is generally advisable to insist on full compliance to safeguard their interests.

For contractors, adhering to the CHIA helps build trust with clients and ensures avoidance of legal issues and potential penalties. By maintaining proper registration, providing detailed contracts, and contributing to the Home Improvement Guaranty Fund, contractors demonstrate their commitment to ethical business practices.

In the end…

Understanding the Connecticut Home Improvement Act is essential for both homeowners and contractors. It offers a framework for fair and transparent transactions, ensuring the protection of consumer rights and promoting high standards within the home improvement industry. For more detailed information and access to the full text of the act, refer to the Connecticut General Assembly's website or consult legal experts specializing in home improvement laws.

By staying informed and compliant, homeowners and contractors can navigate the complexities of home improvement projects with confidence and security.

Sam Schlem