Kelly Gidzinski

PA Homeowners Have a New Tool When Hiring Contractors - The Home Improvement Consumer Protection Act

The Home Improvement Consumer Protection Act ("HICPA") was adopted by Pennsylvania in 2008.  The law establishes a mandatory registration program for contractors who offer or perform home improvements in Pennsylvania and takes effect on July 1, 2009.  It establishes minimum insurance requirements for contractors; requires contractors to provide their registration number in their ads and contracts; establishes required contract terms for home improvement contracts; prohibits unfair business practices; and creates a criminal penalty for home improvement fraud.

Some highlights from HICPA*: 

1. Mandatory Registration for All Contractors (and Independent and Sub-Contractors) who perform more than $5,000 yearly in Home Improvements
2. Disclosure of crime, fraud, bankruptcy, license revocation or judgements entered for past 10 years 
3. Proof of Liability Insurance for not less than $50,000 
4. Contactor registration number must be included in every estimate, proposal or contract 
5. Name, address, and telephone number of contractor (NOT PO Box #) must be included
6. State Toll Free number of the PA Bureau of Consumer Protection (800) 441-2555 to check if contractor is registered
7. Description of work, materials, and specifications cannot materially be changed without written order signed by both parties
8. Sub and Independent Contractors known on project at signing should have listed their Name, address (NOT PO Box #), and telephone number
9. No Excessive down payment greater than 1/3 of total sales price (PLUS cost of non stock “Special Order Materials”) for jobs over $1,000
10. Contractors are prohibited until compliant from offering Home Improvements  
11. Criminal felony or misdemeanor Penalties for Home Improvement fraud (enhanced if against persons 60 or older)

Remember to always thoroughly investigate any contractor before hiring. Verify insurance, get estimates in writing, check references and make sure they are registered with the PA Bureau of Consumer Protection (800) 441-2555. Visit this website for Frequently Asked Questions: http://www.attorneygeneral.gov/hic.aspx?id=4339#What_is_a_home_improvement?

Visit my website for low cost ways to spruce up your home before listing your home for sale...  http://www.yourlifemoves.com/Links_and_Online_Reports/page_909436.html

* Some take away highlights of the Act. This is not a complete list of the law and not a legal interpretation. Information is deemed to be accurate, but is not guaranteed.