While the Pennsylvania Home Improvement Consumer Protection Act (the “Act”) has been in effect since July 1, 2009, it appears that not all contractors who perform home improvements have complied with the Act and that not all homeowners are aware of the new law. This raises some real concerns for those contractors who are not complying as well as for their customers who may not realize the legal protection they are entitled to. The Act was largely created to protect consumers from unscrupulous contractors. It requires registration by contractors; minimum insurance coverage; specific written contract terms; prohibits unfair business practices; and creates penalties for contractors who do not comply.
Contractors who perform home improvements are required to register with the Office of the Attorney General (online registration at www.attorneygeneral.gov). As part of the registration, the contractor must supply substantial information regarding his background including any past problems related to his business. Upon approval, the contractor receives a registration number which must be included on all contracts and business cards. The registration must be renewed every two years. A contractor who fails to register is prohibited from offering or performing home improvements.
Every homeowner should investigate a proposed contractor before hiring that person. That investigation can be done very easily by contacting the Attorney General’s office and searching by the registration number or contractor’s name (customer’s can use the toll free number 1-888-520-6680 or the above website). Of course, while the new registration system requiring contractor information is one step in the right direction, it does not shed full light on the quality, professionalism or honesty of a given contractor. A prudent homeowner should speak to others who have used the contractor, obtain multiple bids, and check with the Better Business Bureau. After investigating a contractor to the homeowner’s satisfaction, the next phase involves discussion about the scope and details of the work to be performed and the price for the project.
Under almost all circumstances (any home improvement costing more than $500), the Act requires a contractor to use a written contract with specific terms which must be signed by the homeowner. The requirement of a written contract is calculated to avoid some of the disputes which have commonly arisen where the terms were not reduced to writing. The required content of the written contract is fairly extensive and mandates that it clearly states the scope of work, specifications, materials to be used, and, very importantly, the price and terms of payment.
Contractors that do not comply with the Act are subject to civil penalties as well as criminal penalties where fraud has occurred. A homeowner should perform a reasonable investigation of the contractor and be fully satisfied with the terms of the written contract before moving forward with any home improvement project. If a dispute or concern arises at any stage of the process, it would be wise to consult an attorney. We represent both contractors and homeowners and are often able to assist our clients in quickly resolving any dispute or problem.
— Curt Ward