The Connecticut Home Improvement Guaranty Fund, explained
Who can claim, what you need first (an award or judgment), the two-year deadlines and what the fund does not pay.
If a registered Connecticut contractor takes your money and does not do the job, or does it so badly that a court or arbitrator orders them to pay you, collecting can be hard. The state's Home Improvement Guaranty Fund is a last-resort remedy for certain owners. The details are in section 20-432 of the Connecticut General Statutes.
How the fund is financed
The Department of Consumer Protection maintains the fund. Each registered contractor pays a fee of $100 each year to the fund with the application or renewal (the fee is waived for a contractor acting solely as contractor of record for a corporation), and each registered salesperson pays $40. The statute directs fees to the fund until its balance reaches $750,000.
What you must have first
The fund pays only on a decision against the contractor. Subsection (d) says that an owner who obtains a binding arbitration decision, a court judgment, order or decree against a contractor who holds, or has held, a registration, or against a proprietor, within two years of the date the contractor entered into the contract with the owner, for loss or damages from performing or offering to perform home improvement in Connecticut, may apply to the commissioner for an order directing payment out of the fund. In plain terms:
- The contractor must hold, or have held, a registration, and your decision must come within two years of the date the contractor entered into the contract with you.
- You must first get an arbitration decision, court judgment or order of restitution. Small claims court is one route; a lawyer can advise on others.
- You must wait until the decision is final or the time to appeal has expired.
- Then you apply to DCP on its form, with a copy of the decision, judgment, order or decree.
Deadlines
No application may be made later than two years after the final determination of, or expiration of time for appealing, the decision or judgment. Missing the deadline can end the claim, so write the dates down.
Restitution orders
An owner who receives an order of restitution in a proceeding brought by the commissioner or the Attorney General, or in a criminal proceeding under section 20-427, may also apply for payment of the unpaid amount (subsection (f)).
What it pays
The commissioner orders payment of the amount unpaid on the decision for actual damages and costs taxed by the court, "exclusive of punitive damages." It pays the unpaid amount of what the court or arbitrator awarded, not what you think the job cost. The statute also lets the commissioner notify the contractor, who has a right to a hearing if they have already paid you or are following a payment schedule. A contractor, and a proprietor of a business entity, who causes a payment out of the fund can be liable to repay the fund.
What the fund does not do
It does not decide the dispute for you, and it does not pay before you have a decision. It does not cover work done by someone who was never registered. It does not pay punitive damages. And a successful claim depends on the facts of your case. DCP and a lawyer can tell you whether you qualify.
Protecting yourself first
- Check the contractor's registration before you sign (our registration guide explains how).
- Make sure the contract contains the required terms (see our contract guide).
- Do not pay the full price up front. Tie payments to completed work.
- Pay by check or card and keep records.
- If the contractor does not start, send a written refund request by a method that proves delivery; the law requires a refund within ten days if little or no work was done after the start date passed by thirty days.
This guide is general information, not legal advice. For your own claim, contact DCP or a lawyer.
General information only, current as of the date above. The information on Connecticut Home Improvement Contractor Check is not a recommendation or a guarantee of anyone's work. A license record shows registration status on the date shown, not workmanship, insurance coverage at the time of your job, or suitability for your project. Confirm license, insurance and permits directly before you hire. Rules and programs change; check the official sources linked in this guide.