Pennsylvania’s Home Improvement Consumer Protection Act doesn’t just regulate who can register as a contractor—it also dictates exactly what must be included in your contract. If your agreement doesn’t meet the state’s requirements, you could face legal disputes, voided contracts, or even criminal penalties.
Basic Contract Requirements
At a minimum, your Pennsylvania Home Improvement Contract must:
- Be in writing
- Include your contractor registration number
- List the Attorney General’s Office Consumer Protection toll-free number
These are non-negotiable requirements—leaving them out can immediately put you at risk.
What Must Be Included in Every Contract
Pennsylvania law outlines several specific details your contract must contain:
- Start and completion dates: Provide estimated timelines for the project
- Detailed work description: Include materials, specifications, and scope of work
- Written change order clause: Changes must be documented and signed by both parties
- Cost estimate: You can’t exceed this estimate by more than 10% without consent
- Deposit limit: Initial deposits cannot exceed one-third of the total contract value
Subcontractor information: Names, addresses, and phone numbers of all known subcontractors - Liability insurance coverage: Must state minimums of $50,000 for both personal injury and property damage
- Three-day right of rescission: Homeowners must be allowed to cancel within three business days
Arbitration Clause Requirements
If your contract includes a mandatory arbitration clause, Pennsylvania law requires:
- The clause must be written in bold, all capital letters
This is meant to ensure homeowners are fully aware of their rights and responsibilities before signing.
What Your Contract Cannot Include
There are also strict rules on what cannot appear in your contract. You may not:
- Waive the homeowner’s right to a jury trial
- Include a clause stating the contractor will automatically receive attorney’s fees if sued
Including these provisions could render your entire contract void in the event of a dispute.
Consequences of Non-Compliance
If your contract fails to meet these standards, it may be deemed void and unenforceable. Even worse, violations of the Act can lead to criminal penalties. In short: one small oversight can create major problems for your business.
Don’t Wait Until It’s Too Late
If you’re a builder or remodeler in Pennsylvania, ignoring the details of your home improvement contract could cost you big—legally and financially. With strict rules about what must and must not be included, even a small mistake could void your contract or lead to penalties.
Now is the time to review your contracts and make sure they’re in full compliance with Pennsylvania law. If you haven’t had an attorney look over your paperwork lately, don’t wait for a dispute to arise. Reach out to Steve Snyder for a contract review and protect your business before problems start.