SPECIAL GRANDFATHERED CONSTRUCTION SUPERVISOR LICENCE

1. Thomas G. Gatzunis, P.E. Commissioner Kevin M. Burke Secretary of Public Safety SPECIAL GRANDFATHEREDCONSTRUCTION SUPERVISOR LICENCE Four New “Special” Construction Supervisor Licenses Department of Public Safety July 1, 2008

2. As you begin to view this power point presentation we hope this will assist your Company in providing you information on the law of MGL, Chapter 142, Home Improvement Registration and our four new “Special” CSL licenses, along with our restricted/unrestricted CSL license, and provide you with the knowledge on obtaining building permits. Please note the following: HIC refers to Home Improvement Registration (Governed under MGL, Chapter 142A, and 780 CMR R6) CSL refers to Construction Supervisor License (780 CMR R5)

3. Question: Will my company be required to apply for a special CSL license to perform the work? Answer: No, this new specialty license is given to the individual contractor who can successfully prove they have been performing this license category for the last five years with homeowner’s names, addresses. You are using sub-contractors to perform the work. These sub-contractor must have their own HIC, along with their CSL license. Question: Must my sub-contractors we hire to perform the project must have their own HIC? Answer: Yes, all sub-contractors must have their own HIC, under MGL, Chapter 142a MGL Chapter 142a, c 9 Question: If all my employees have their own construction supervisor license, will they need the special license. Answer: No, however, when obtaining permits, you must use your HIC, and you will use the CSL license holder, who will be performing the project or supervising the project.

4. Question: Why should I obtain Supplemental Cards for my employees? Answer: A supplemental cards are provided for the following uses: (1) What we refer to as a permit “runner” for an employee to obtain permits. (2) Those employees who actually performs the work, and will be able to be grandfathered for their “Special CSL or have their own unrestricted/restricted CSL license. However, when you apply for a permit, you will need your company’s HIC registration card, along with the CSL or (Special CSL License) who will be supervising the job. You must present a picture of the Special CSL/or CSL license (picture). YOU MUST USE THE CSL license holder, WHO WILL BE PERFORMING/SUPERVISING THE PROJECT FOR THE PERMIT IN THE CITY/TOWN.

5. FORMULA TO OBTAIN PERMITS • Company HIC or Supplemental Card + Sub-contractors HIC + CSL supervising the project • Company HIC or Supplemental Card + Employee’s CSL who will be supervising the project • Individual owners HIC + CSL license, as long as you are supervising the project

6. Question: Will having one of the specialty licenses allow me to construct a home or other building structure? Answer: No. In order to provide any construction supervision for a building (whether a one or two family home or other type of building) one needs to be experienced in and possess an appropriate license. A specialty license indicates expertise in a narrow area of windows/siding, roofing, demolition, masonry, solid-fuel burning installations. Question: If you presently hold a Home Improvement Contractor Registration, and a Construction Supervisor License, will I need to apply for my Special CSL grandfather’s program by July 1, 2008, to perform roofing, replacement windows, fuel burning stove, demolition? Answer:No, as long as your signing contractors with homeowners, and you will be performing or supervising the project.

7. Contracts with Homeowners Contracts with Homeowners MGL, Chapter 142a, § 2, Residential Contracting Agreements, Requirements: (1) the complete agreement between the owner and the contractor and a clear description of any other documents which are or shall be incorporated into said agreement; (2) the full names, addresses, exclusive of post office box addresses, registration number of the contractor, the names of the salesperson, if any, who solicited or negotiated the contract and the date when said contract was executed by the parties; (3) the date on which the work under the contract is scheduled to begin and the date on which said work is scheduled to be substantially completed; (4) a detailed description of the work to be done and the materials to be used in the performance of said contract; (5) the total amount agreed to be paid for the work to be performed under said contract; (6) a time schedule of payments to be made under said contract and the amount of each payment stated in dollars, including all finance charges. Any deposit required under the contract to be paid in advance of the commencement of work under said contract shall not exceed the greater of one-third of the total contract price or the actual cost of any materials or equipment of a special order or custom made nature, which must be ordered in advance of the commencement of work, in order to assure that the project will proceed on schedule. No final payment shall be demanded until the contract is completed to the satisfaction of the parties thereto; Continue ->

8. (7) the signatures of all parties shall be affixed to the contract; (8) there shall be a clear and conspicuous notice appearing in the contract: that all contractors and subcontractors must be registered by the administrator and that any inquiries about a contractor or subcontractor relating to a registration should be directed to the administrator; of the registration number of the contractor or subcontractor; of an owner’s three-day cancellation rights under section forty-eight of chapter ninety-three, section fourteen of chapter two hundred and fifty-five D, or section ten of chapter one hundred and forty D as may be applicable; of all warranties and the owner’s rights under the provisions of this act; in ten point bold type or larger, directly above the space provided for the signature, “Do not sign this contract if there are any blank spaces”; of any lien on or security interest on the residence as a consequence of the contract. (9) an enumeration of such other matters upon which the owner and the contractor may lawfully agree; provided, however, that no such agreement may waive any rights conveyed to the owner under the provisions of this chapter; and (10) any other provision otherwise required by the applicable laws of the commonwealth. Continue ->

9. No contract shall contain an acceleration clause under which any part or all of the balance not yet due may be declared due and payable because the holder deems himself to be insecure. However, where the contractor deems himself to be insecure he may require as a prerequisite to continuing said work that the balance of funds due under the contract, which are in the possession of the owner, shall be placed in a joint escrow account requiring the signature of the contractor and owner for withdrawal. At the time of signing, the owner shall be furnished with a copy of the contract signed by both the contractor and the owner. No work shall begin prior to the signing of the contract and transmittal to the owner of a copy of such contract. Any contract entered into between a contractor and homeowner shall require the contractor to inform the homeowner of the following: (i) any and all necessary permits, (ii) that it shall be the obligation of the contractor to obtain said permits, and (iii) that homeowners who secure their own permits will be excluded from the guaranty fund provisions of this chapter. Any contract entered into between a contractor and homeowner may provide that the contractor may initiate alternative dispute resolution through any private arbitration services approved by the director, under paragraphs (a) to (e), inclusive, of section four; provided, that said alternative dispute resolution provision is clearly and conspicuously disclosed in the contract, in language designated by the director, and that each party separately signs and dates the provision, thereby assenting to the procedure. Contracts which fail to comply with the requirements of this section shall not be invalid solely because of noncompliance.

10. Question: If I am only registered as a individual Home Improvement Company, and work strictly by myself, will I need to apply for a Special CSL License. Answer: Yes, if you wish to perform the four new CSL licenses. Plus you must prove you have been providing the service, and must have at least five years experience, with a lists of homeowners, addresses, phone numbers. Individual Contractor

11. Obtaining permits with a Construction Supervisor License? Question: If I am personally performing the project, may I apply with both my HIC and CSL? Answer: Yes, as long as you are contracting with the homeowner, and supervising the job. Question: Can I use a Construction Supervisor License for a project, if the CSL holder will not being supervising? Answer: No, you must use your companies home improvement registration to obtain the building permit, and the “Special” CSL holder or your CSL license, only the CSL performing the work, or supervising the project.

12. Question: What happens when installing an replacement window, and structural changes need to be done, and my CSL is only a specialty license? Answer: You must amend the building permit with the new unrestricted/restricted CSL Holder to perform the structural project. Question: You complete the contract project of replacement windows, and the homeowner wants a deck? Answer: You must write a new contract, amend building permit, and seek a unrestricted/restricted CSL holder to perform/supervise the project? Question: What if I am having problems with the homeowner? Answer: Remember, abandoning a project is a violation (MGL, Chapter 142a, § 17, item (2). Try to work out all problems. If a homeowner submits a complaint against your HIC or CSL, a hearing result in a reprimand/fined /suspension and or revocation. Check your contract agreement you signed with the homeowner, and try to explain what the contract states, and if any additional changes, must reflect on the contract. If the homeowner has asked for additional work, a new contract must be done. Problems During Construction

13. All Contractors Who Sign An Agreement With Homeowners Under Our Home Improvement Registration Program Must: Always Obey the Law, As Each Violations Could Result In A Administrative Penalty of $2,000 and Suspension or Revocation Under MGL, Chapter 142a § 17, (1-17) Suspension Fined Revocation

14. New Specialty Construction Supervisor License • The new, specialty Licenses will be the first to be issued with the new look.  Shortly thereafter, existing construction supervisor license categories will be printed in the new format. Over time, all Department licenses will bear the new look.   • Existing Construction Supervisor License categories include: • Unrestricted • Restricted and • Masonry Only • It is important to check license restrictions that appear on the front of the card in the upper left corner.  Restriction codes are defined on the reverse side of the card.  A restriction code indicates the type of work allowed by the license.  For instance, a license with an RF restriction code allows the licensee to perform and supervise the installation of roofing materials   A complete list of Construction Supervisor License categories (including new license categories) with restriction codes appears below. • Unrestricted 00–Restricted -1G • Residential Window and Siding - WS     • Residential Demolition Only - DM • Residential Solid Fuel Burning Appliance Installation • Masonry Only – 1A • Residential Roof Covering - RF

15. We thank you for taking the time to view this power point presentation, and hope this has helped your Company Please Refer to Our Website www.mass.gov/dps