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This entry was published on 2020-05-29
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Responsibilities of roofing contractors
General Business (GBS) CHAPTER 20, ARTICLE 36-A
§ 771-b. Responsibilities of roofing contractors. 1. Every roofing
contractor shall enter into a written contract with an owner pursuant to
all of the provisions of section seven hundred seventy-one of this
article before engaging in the business of roofing, gutter, downspout or
siding services for such owner. In addition, the contract entered into
under this section shall contain the name of the insurer, type of
insurance coverage as required by subdivision nine of this section, and
the insurance policy limits obtained by the roofing contractor.

2. A roofing contractor shall not advertise or promise to pay or
rebate all or any portion of any insurance deductible as an inducement
to the sale of goods or services. As used in this section, a promise to
pay or rebate includes granting any allowance or offering any discount
against the fees to be charged or paying the insured or any person
directly or indirectly associated with the property any form of
compensation, gift, prize, bonus, coupon, credit, referral fee, or other
item of monetary value for any reason.

3. An owner who has entered into a written contract with a roofing
contractor to provide goods or services to be paid under a property and
casualty insurance policy may cancel the contract prior to midnight on
the third business day after the insured party has received written
notice from the insurer that all or any part of the claim or contract is
not a covered loss under the insurance policy. Cancellation occurs when
written notice of cancellation is given to the roofing contractor.
Notice of cancellation, if given by registered or certified mail, shall
be deemed given when deposited in a mailbox properly addressed and
postage prepaid. Notice of cancellation shall be sufficient if it
indicates the intention of the owner not to be bound. Notwithstanding
the foregoing, this subdivision shall not apply to a transaction in
which the owner has initiated the contact and the roofing contract is
needed to meet a bona fide emergency of the owner, and the owner
furnishes the roofing contractor with a separate dated and signed
personal statement in the owner's handwriting describing the situation
requiring immediate remedy and expressly acknowledging and waiving the
right to cancel the roofing contract within three business days. For the
purposes of this subdivision the term "owner" shall mean an owner or any
representative of an owner.

4. Within ten days after a contract referred to in subdivision three
of this section has been cancelled, the roofing contractor shall tender
to the owner any payments, partial payments, or deposits made and any
note or other evidence of indebtedness. If, however, the roofing
contractor has performed any emergency services, acknowledged by the
owner in writing to be necessary to prevent damage to the premises, the
roofing contractor shall be entitled to the reasonable value of such
services. Any provision in a contract referred to in this subdivision
that requires the payment of any fee for anything except emergency
services shall not be enforceable against the owner who has cancelled a
contract pursuant to this section.

5. A roofing contractor shall not require an owner to provide a
deposit for the work and materials. A roofing contractor shall not
mandate that a particular form of payment be made in order to commence
performance of the home improvement. A roofing contractor may invoice
for payment of the materials portion of the project upon delivery of the
materials to the owner of the property. The material cost must be
disclosed to the property owner in writing in advance of payment. A
roofing contractor may invoice the remainder of the project upon
successful completion of all contracted work.

6. A roofing contractor shall not abandon, or fail to perform, without
justification, any roofing contract, nor shall the roofing contractor
deviate from or disregard plans or specifications in any material
respect without the consent of the owner. A roofing contractor shall
abide by the applicable building code for the jurisdiction where the
residential property is located.

7. A roofing contractor shall not fail to pay for materials or
services rendered in connection with a roofing contract where the
contractor has received sufficient funds as payment for the particular
contract for which the services or material were rendered or purchased.

8. A roofing contractor shall not perform the reporting, adjusting, or
negotiating a claim on behalf of the owner and shall not receive
compensation for the referral to any entity that reports, adjusts or
negotiates a claim on behalf of an owner. Nothing herein prevents a
roofing contractor from communicating with an insurance company
representative and sharing his or her technical knowledge when the
insurer initiates the communication.

9. (a) A roofing contractor shall provide to the owner adequate proof
of insurance of the types and amounts set forth in this subdivision:

(1) A certificate of workers' compensation covering all employees of
the roofing contractor. If the roofing contractor does not have any
employees, then the contractor must provide a certificate of attestation
exemption (CE-200) form from the workers' compensation board; and

(2) Certificates of general liability and property damage insurance in
the amount of one hundred thousand dollars per person, three hundred
thousand dollars per occurrence, bodily injury; and fifty thousand
dollars for each occurrence and aggregate, property damage.

(b) The insurance requirements set forth in this subdivision shall
apply to roofing contracts performed in all political subdivisions that
do not contain any insurance requirements for such contracts.