Home Improvement Contractor Law- Q & A

The Home Improvement Consumer Protection Act

In 2008, Pennsylvania Legislature passed the Home Improvement Consumer Protection Act. This law requires that all contractors who perform $5,000 or more in home improvements in a year must register with the Attorney General’s Office. Along with registering, the law requires that contractor’s carry minimum insurance coverage and use required contract terms for home improvement contracts. The law prohibits unfair business practices and creates a criminal penalty for home improvement fraud.

Q: How does this law affect me?

A: The registration ensures the consumer that the contractor is legally allowed to perform services and has adequate insurance. A contractor who fails to register with the Attorney General’s Office is prohibited from offering or performing home improvements and may face legal action, including civil penalties of $1,000 or more.

The following information can be found about a contractor by looking up an installer’s registration number:
- Name, address and phone number of contractor including map of where business is located
- Description of type of home improvement services provided
- Date registered with Attorney General’s Office and expiration date of registration
- Background disclosures including information on prior bankruptcies and criminal pleas or convictions
- Insurance policy information showing at least $50,000 of personal injury liability coverage and $50,000 of property damage coverage

Q: What is considered a home improvement?

A: Home improvement includes all of the following activities when they are done in connection with land or portion of land adjacent to a private residence for which the total cash price of all work agreed upon between the contractor and owner is more than $500:
- Repair, replacement, remodeling, demolition, removal, renovation, installation, alteration, conversion, modernization, improvement, rehabilitation, or sandblasting.
- Construction, replacement, installation or improvement of driveways, swimming pools, pool houses, porches, garages, roofs, siding, insulation, solar energy systems, security systems, flooring, patios, fences, gazebos, sheds, cabanas, landscaping work, painting, doors and windows and waterproofing.

Exempt from the law is new home construction, as this is not considered a home improvement.

Q: How can I check if my installer/contractor is registered?

A: A consumer can verify a contractor’s registration number by visiting http://www.attorneygeneral.gov/hicsearch or calling toll free 1-888-520-6680.

Q: What if my installer is not registered? Should I not hire a non-registered installer to do work on my home?

A: Registration does not, however, guarantee the contractor’s honesty and integrity. This is why it is very important to check contractor’s references and obtain more than one bid when getting an estimate for work to be performed.

Part-time contractors performing less than $5,000 of work a year are not required to register. You should consider the complexity of the job and the risks involved in hiring uninsured, part-time contractors.

Q: I am a contractor and forgot to register by the deadline, how do I register with the state as an installer?

A: The deadline for registering with the Attorney General’s Office was July 1, 2009. Registration is easy and can be done at the Attorney General’s website at http://www.attorneygeneral.gov/. Click the link “consumers” and then click the icon on the right side of the page that says, “Click here for the home improvement contractors registration”.

Registration is valid for two years and costs $50.00 plus a $1.25 processing fee. Upon registering, a contractor can print a temporary registration certificate until the official one is sent in the mail. The registration number must be included in any advertisements (including ads on your vehicle), contracts, estimates, and proposals that a contractor uses in Pennsylvania.’

Q: What is H. Winter & Co. doing to adapt to this new law?

A: H. Winter & Co. is a building materials supplier and is not required to register with the state. We are, however, adding installers’ registration numbers (if registered) to our list of recommended tile installers.