Pennsylvania’s Home Improvement Consumer Protection Act
Pennsylvania provides robust protections for homeowners under the Home Improvement Consumer Protection Act (HICPA). HICPA was enacted in 2009 as a part of the Unfair Trade Practices & Consumer Protection Law (UTPCPL). Because HICPA was designed to protect consumers, courts will often favor the consumer over the contractor. Understanding the requirements of HICPA can help both homeowners and contractors to protect themselves and enter into contracts with confidence.
What is covered by HICPA?
HICPA applies to home improvement contracts for work that is greater than $500. This covers things like:
- repairs,
- replacements,
- renovations,
- demolition,
- painting,
- and modernization.
It can also cover other portions of a private, residential property, like decks, porches, driveways, fences, and swimming pools.
HICPA does not cover commercial properties such as businesses, apartment buildings, or apartment complexes. It only applies to private residences. It does not cover contracts for new home construction, or the selling goods or materials related to a home improvement contract.
Consumers’ Rights Under HICPA
As the consumer or homeowner, you have certain rights under HICPA that protect you from fraudulent practices.
- Copies of Contracts—You have the right to receive a free, completed copy of your home improvement contract from your contractor.
- Rescinding Contracts—You have the right to rescind or cancel a home improvement contract within 3 business days of signing the contract. Some exceptions may apply in certain emergency situations.
- Voidable Contracts—You have the right to void a contract if the contractor has not included all of the information required by law.
- Payment & Contracts—You are not required to prepay your contractor prior to signing the home improvement contract.
Requirements for Contractors
There are a lot of requirements placed on contractors under HICPA. If you are a contractor, you are required to register with the Bureau of Consumer Protection before performing any work or advertising as a contractor. In addition to registering, you must also provide the Bureau with information about yourself. This includes:
- Identifying Information—Your name, address, social security number, driver’s license number, and federal employer ID number.
- Criminal & Court Records—If you have any relevant prior criminal offenses, like fraud, you must provide record of that. You must also provide any civil judgments related to home improvement that have been filed against you.
- Financial Statements—If you have filed for bankruptcy within the last 10 years, you must provide financial records.
- Liability Insurance—You must provide proof that you have the proper liability insurance, including insurance for personal injury and property damage up to a certain amount.
Contract Requirements
As a contractor, Pennsylvania requires you to include certain terms in your contract to maintain HICPA compliance. Failing to include these terms will void your contract. For your contract to be legally enforceable, you must have the following.
- It must be in legible writing and signed by all parties.
- Your contract must identify all contractors and subcontractors. All registration numbers and insurance information must be included, along with everyone’s contact information.
- Your contract must contain a detailed description of the work, materials, and specs. It should detail the entire agreement.
- You are not permitted to charge for changes without a written change order.
- The contract must itemize the sales price, deposit receipts, and payment schedule. You must also include the date of the transaction and the approximate start and end dates of the project.
- You must include the toll-free number for the Bureau of Consumer Protection.
- Your contract should include a notice of the right to rescind the contract within 3 business days of signing it. There can be no penalties for rescinding.
Once the contract is completed and signed, you must provide the consumer with a copy.
HICPA Violations
The most common type of HICPA violation is fraud. This can occur in multiple ways. Under HICPA, fraud can take the form of a contractor:
- Intentionally providing misleading or false information to convince you to enter a home improvement agreement.
- Receiving payment and failing to provide services or materials.
- Damaging your property in order to solicit an agreement for services or materials.
- Altering a contract or agreement without your consent.
- Publishing a false or deceptive advertisement.
- Misrepresenting special order material or its cost.
- Representing themselves as a governmental unit employee or a public utility employee.
Call Cornerstone Law Firm for help.
If you find yourself in a legal dispute over a home improvement contract, the attorneys at Cornerstone Law Firm can help. Whether you are a consumer or a contractor, you can contact our office to schedule a consultation.