SECTION 1: Section 2(a) of Chapter 142A of the general laws is hereby amended by striking out clause (6) and inserting in place thereof the following new clause:
(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. (i) except as provided under subparagraph (ii), 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. (ii) the provisions of subparagraph (i) shall not apply to contractors furnishing a performance and payment bond, lien and/or completion bond, or a bond equivalent approved by the Director of Consumer Affairs and Business Regulation covering a minimum of two million dollars. Any violation of this section shall constitute an unfair method of competition or unfair or deceptive act or practice in violation of chapters 93A.
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