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The Pennsylvania’s Home Improvement Consumer Protection Law Regulates What Must Be in Your Home Improvement Contract and What Cannot Be in Your Contract…and a Mistake Could Be Costly
Pennsylvania Home Improvement Contractors should be aware that the Pennsylvania Home Improvement Consumer Protection Act, which established the registration of Home Improvement or Remodeling Contractors, also contained very specific requirements for what must be in every Home Improvement Contract in Pennsylvania. The Law also has very specific provisions as to what cannot be in your contract. And a violation of those requirements could be very costly.
Essential Elements Required in a Pennsylvania Home Improvement Contract
For starters, a Home Improvement Contract in Pennsylvania must be in writing and must have the contractor registration number on the contract. The State Attorney General’s Office Consumer Protection Toll Free Number must also be on the contract.
Under the law, the contract must contain the approximate starting date and completion date and must include a description of the work to be performed, the materials to be used and a set of specifications that cannot be changed without a written change order signed by the owner and the contractor. The contract must contain a written cost estimate, and the contractor cannot exceed that estimate by more than 10%. The contract must also state the amount of the initial deposit, and the deposit cannot exceed one-third (1/3) of total price of the contract.
The contract must include the names, addresses and telephone numbers of all subcontractors known at the date of signing the contract. The contract must also state the amount of liability insurance coverage the contractor carries, which must include personal injury in an amount of at least $50,000 and insurance covering property damage of at least $50,000. The contract must also include a three day right of rescission clause.
Key Legal Clauses, Restrictions, and Consequences
There are also specific requirements for mandatory arbitration language in the contract including that the clause must be in bold face type and all capital letters.
In addition to these mandatory provisions that must be in the contract, the law states that the contract cannot contain a provision waving the right to a jury trial or that, in the event of a suit the contractor would be awarded attorney fees.
In addition to these and other provisions the law provides that if the contract does not comply with the law, it will be voided in the event of a dispute between the contractor and the owner. The law further established criminal penalties for failing to comply.
Don’t wait until you have a serious legal problem to call
If you have never had an attorney review your contract, you should not put it off. Give me a call at (717) 975-7799 or go to my web site for more information at www.steveonyourside.com. My email address is stevenrsnyderesq@gmail.com
Steve Snyder is an attorney in Harrisburg, Pa, licensed to practice in Pennsylvania and New Jersey. Steve’s law practice concentrates on legal representation of residential builders, remodeler, building supply companies, building services companies and anyone involved in the residential construction industry. If you have a legal question about your business, give Steve a call at (717) 975-7799 or email him at stevenrsnyderesq@gmail.com.