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General Laws

Section 5. There shall be established a Residential Contractor’s Guaranty Fund within the office of consumer affairs and business regulation, to compensate owners for actual losses incurred by them as a result of registered contractor or subcontractor conduct which has been found by a court of competent jurisdiction to be work performed in a poor or unworkmanlike manner or which is a common law violation or a violation of any statute or regulation designed for the protection of consumers, including but not limited to, prohibited acts listed in section seventeen; provided, however, that the owner has exhausted all customary and reasonable efforts to collect the judgment but the contractor has filed for bankruptcy, fled the jurisdiction or the owner is otherwise unable to collect such judgment after execution. The director shall promulgate such regulations as he may deem necessary to implement the fund under this chapter. Prior to the adoption, amendment or repeal of any regulation, the director shall give notice and hold a public hearing in accordance with the requirements of chapter thirty A. The fund administrator shall be responsible for implementing the provisions of this chapter and such regulations as the director may promulgate as they relate to the fund.

For purposes of recovery against the fund, the conduct of a registered contractor or subcontractor shall be deemed to include the conduct of his employees, salespersons and subcontractors, whether or not an express relationship exists, provided the work or activities of such individuals is within the scope of the contract and not for additional work beyond the contract which such individuals undertake by separate agreement with the owner.

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