COntractor Registration PA, NJ & DE
Pennsylvania’s Home Improvement Consumer Protection Act
We have been telling our Contractor clients for years to prepare themselves and to get their ducks lined up as Pennsylvania’s Home Improvement Consumer Protection Act went into effect (July 1, 2009) as it was signed into law back in October 17, 2008, by Governor Ed Rendell.
The Contractor and Consumer home improvement relationship will never be the same.Again, as of July 1, 2009, a Contractor who performs the following 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, certain landscaping, painting, doors and windows and waterproofing. The installation of central heating or air conditioning or storm windows or awnings, this new law affects you and you’re required to be registered in the state of Pennsylvania.Contractors who need not register: If you performed less than $5,000.00 of home improvements during the previous taxable year, you do not need to register, however it is highly recommend you register if you anticipate performing more than $5,000.00 in the coming year(s). New home builders and building suppliers that do not perform home improvements are exempt from registration.Need to register?
Simply click here http://www.attorneygeneral.gov and complete the online registration process. Given the overhaul of the Contractor industry, surprisingly registration is only $50.00, but you must renew your registration every two years. Contractors must include their contractor’s registration number on all your advertisements, contracts, estimates and proposals after July 1, 2009.Sounds easy right? We’ll hold on I’m just getting started, in addition to the registration Contractors are also required to adhere to the following in their contracts to their consumer clients:Three Business Day right to rescission rule, Contractors must carry insurance covering personal injury in an amount not less than $50,000.00 and insurance covering property damaged in an amount not less than $50,000.00, any job with an actual cash value of $500.00 or more, must comply with the requirements of the Pennsylvania Home Improvement Consumer Protection Act and any contract after July 1, 2009 that does not meet the requirements of the new law will be invalid and or unenforceable.
Simply put you as the Contractor want get paid! In addition to the above the new law it requires that a Contractor’s contract with consumers include a host of other specific information such as:
Consumer Contract Partial Specific’s
• Pennsylvania Bureau of Consumer Protection in the Office of the Attorney General phone number on contracts,
Scope of work including specifications,
Notice of Right of Rescission,
Estimated Start/Completion date,
Deposits/Down Payments, and
Many other contract clauses.
Again there are many other important specific clauses required under the new law to ensure consumers are fully protected when entering into contracts with home improvement Contractors. If you are not in compliance with the new Home Improvement Consumer Protection Act, give us a call (215) 709-7070, Liberty can help.