What is the Home Improvement Consumer Protection Act? The law establishes a mandatory registration program for contractors who offer or perform home improvements in Pennsylvania. The statute also 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.
What is a home improvement? Home improvement includes all of the following activities when they are done in connection with land or a portion of the land adjacent to a private residence or a building or a portion of the building which is used or designed to be used as a private residence for which the total cash price of all work agreed upon between the contractor and owner is more than $500:
(i) Repair, replacement, remodeling, demolition, removal, renovation, installation, alteration, conversion, modernization, improvement, rehabilitation or sandblasting.
(ii) 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 (other than work performed under the Plant Pest Act), painting, doors and windows and waterproofing.
(iii) Without regard to affixation, the installation of central heating, air conditioning, storm windows or awnings.
Who is a home improvement contractor?
Under the law, a home improvement contractor is defined as:
Any person who owns and operates a home improvement business or who undertakes, offers to undertake or agrees to perform any home improvement. The term includes a subcontractor or independent contractor who has contracted with a home improvement retailer, regardless of the retailer's net worth, to provide home improvement services to the retailer's customers. The term does not include any of the following:
(1) A person for whom the total cash value of all of that person's home improvements is less than $5,000 during the previous taxable year.
(2) A home improvement retailer having a net worth of more than $50,000,000 or an employee of that retailer that does not perform home improvements.