In short
Before handing anyone a cent: in Puerto Rico every contractor must be registered in the Contractor Registry, attached to the Construction Office of the Department of Consumer Affairs, and that Registry is available for public review. DACO is required to keep it accessible at its offices and to publish on its website information about complaints against contractors for breach or defective work — only final, firm determinations decided in the consumer’s favour. The Construction Office issues a contractor certification in the name of every registered contractor whose bond is current, and anyone about to submit or accept an estimate, or offer to build or direct construction that is not their own, must obtain it before doing any of that or advertising as a contractor. Three prohibitions that give you leverage: refusing to show you the current certification when you ask is fineable up to $1,000, and no less than $5,000 for each additional violation; hiring an uncertified contractor for work costing $25,000 or more is prohibited and fined up to $100 for each day of violation; and a contractor who subcontracts another without certification faces up to $1,000 per day. The claim deadline: six (6) months for movable property and two (2) years for immovable, counted from completion of the works.
What is it?
The law defines "contractor" deliberately broadly: a natural or juridical person who submits a construction bid or offer, manages, directs or in any direct or indirect way assumes direction of construction work, or who advertises as such — and it includes subcontractors, any specialized contractor and anyone in the construction industry. And "construction" does not mean putting up a house: it means alteration, demolition, restoration, repair, erection, installation of equipment and materials and improvements of any kind of work, and it expressly includes installations and repairs of essential services and roof treatment to correct leaks. That is, the person who is going to seal your roof or redo your plumbing falls under this law just like the one building a whole house.
Who can do it?
On your side, anyone about to contract construction work. On the contractor’s side, registration is mandatory for everyone who fits the definition. There are concrete bond and fee exemptions: someone holding a builder or developer licence under Act 130 need not post the bond or pay this law’s fees, and someone without that licence whose work is bonded need not post the bond either, though they must show convincing evidence. Everyone else in the construction business must pay fees and post the bond. Certification is also not required to bid on a federal project whose applicable federal regulation does not demand it, nor from citizens holding a licence authorizing them to practise a regulated or professionally-licensed trade, provided their work stays within that profession or trade.
Requirements
- That the contractor is registered in the Contractor Registry of DACO’s Construction Office.Verified against the official source
- That they hold a current contractor certification, which the Construction Office issues only to registrants whose bond is current.Verified against the official source
- For any job of $25,000 or more: hire only a certified contractor; hiring without certification is prohibited and the person hiring is fined.Verified against the official source
Documents you need
Cost
Step by step
Step 1: Ask for the certification before the estimate
Article 6(bis) is blunt: anyone who submits or accepts an estimate or quote for — or who offers to — build or in any way direct construction that is not their own, or any task or phase of it, must obtain a contractor certification before doing any of that or advertising as such. The certification is issued by DACO’s Construction Office in the name of every duly registered contractor whose bond is current. That is: the certification tells you two things at once — that they are registered and that their bond is live.
Step 2: If they refuse to show it, that alone is a violation
Article 7(a) prohibits refusing to show the current certification when requested by anyone interested in contracting the contractor’s services or who has already contracted them. Whoever violates it is fined by DACO in an amount not exceeding $1,000, and if after being fined they commit additional violations, no less than $5,000 per violation. A refusal to show the paper is, by itself, the signal not to sign.
Step 3: Check the Registry and the published complaints
The Registry is available for public review, and DACO is required to keep it accessible at its offices and to publish on its website information about complaints raised against contractors for breach or defective work. Only DACO determinations that are final and firm and decided in the consumer’s favour are published, and once a determination becomes final and firm it must be published immediately in the Electronic Registry. The Department also reports through the Registry the mechanisms and requirements for filing a complaint against a contractor.
Step 4: Understand what the bond is for
DACO is authorized to require an annual bond based on the contractor’s business volume during the prior calendar year, with percentages the law sets as: 10% for volume of $50,000 or less, 8% from $50,001 to $99,999, 6% from $100,000 to $499,999, and 4% for $500,000 or more. Every new contractor with no history is required to post a minimum bond of four thousand ($4,000) dollars, corresponding to a $50,001 volume. DACO may revise those percentages by regulation considering the rise in construction costs. And there is a strong fine on the other side: anyone doing home construction work that is not bonded faces an administrative fine of a minimum of five thousand (5,000) to a maximum of ten thousand (10,000) dollars, applied to the natural person, to the members of the Board of Directors if a juridical person, or to the partners if a partnership.
Step 5: Count the deadline from when the work ended
It is the easiest line to miss and the most expensive. The substantive law applicable to these cases is Puerto Rico’s Civil Code, and the limitation period to file the complaint or suit under this law is six (6) months for defects in movable property and two (2) years for immovable property, counted from completion of the works. Write down the completion date the day it happens.
Where to do it
The Construction Office of the Department of Consumer Affairs keeps the Registry and issues the certifications, and DACO adjudicates the complaints. Check services and regional offices at daco.pr.gov, or file online at serviciosenlinea.daco.pr.gov. The law itself requires the Department to report through the Registry what mechanisms and requirements exist to file a complaint against a contractor.
How long it takes
What to do if something goes wrong
What this guide does not give you: the direct link to look up a contractor by name, and the bond amounts in dollars for a specific contractor. The law orders a public Registry and publication of final, firm complaints on DACO’s website, but sets no internet address we can cite, and the bond is computed as a percentage of the prior year’s business volume — a figure only the contractor and the Department hold. Ask DACO rather than assume. Two nuances that avoid misunderstandings. One: certification is not required of a professionally-licensed person working within their own regulated profession or trade, so a licensed electrician or plumber may legitimately fall outside the requirement depending on the work. Two: not everyone working at your house is a "contractor" for these purposes; the definition turns on whoever submits the bid, manages or directs the work, or advertises as such. If you are hiring roof sealing, that activity also has its own law with a licence from the Waterproofing Contractors Board.
Common mistakes
- Accepting an estimate without asking for the contractor certification, which the law requires before submitting one.
- Hiring without certification for a job of $25,000 or more: the fine falls on whoever hires, up to $100 per day.
- Not checking DACO’s website for final, firm complaints decided in the consumer’s favour.
- Trusting that they are "registered" without checking the bond is current: certification is only issued if it is.
- Letting the deadlines pass: six months for movables and two years for immovables from completion of the works.
- Not documenting the completion date in writing, which is where those deadlines start.
- Thinking roof sealing or essential-service repairs fall outside: the definition of "construction" expressly includes them.
Frequently asked questions
How do I check whether a contractor is registered?
Two ways the law creates. Ask them for the contractor certification: refusing to show it is a fineable violation. And check the Registry, which is available for public review at DACO’s offices, plus the information on final, firm complaints decided in the consumer’s favour that the Department publishes on its website.
Can I hire someone without certification?
For jobs of $25,000 or more, no: Article 7(b) expressly prohibits it and fines whoever hires an amount not exceeding $100 for each day of violation. And a contractor may not subcontract another without certification either, under a fine of up to $1,000 for each day of violation.
How long do I have to claim over defective work?
Six (6) months for defects in movable property and two (2) years for immovable property, counted from completion of the works. The substantive law applicable to these cases is Puerto Rico’s Civil Code.
Does everyone in construction have to be bonded?
Not in every case. Someone with a builder or developer licence under Act 130 need not post the bond or pay this law’s fees. Someone without it whose work is bonded need not post it either, but must show convincing evidence. Everyone else in the construction business must pay fees and post the bond.
Official sources
These are the government pages this guide is based on.
- Departamento de Asuntos del Consumidor (DACO)
DACO
bvirtualogp.pr.gov
- DACO services
DACO
www.daco.pr.gov
- DACO online services
DACO
serviciosenlinea.daco.pr.gov
Last verified
August 23, 2026
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