| In an effort to catch dishonest contractors and | | | | contractor doesn't comply with the Home |
| put an end to their fraudulent actions, | | | | Improvement Protection Act, and a dispute |
| Pennsylvania has enacted the Home | | | | occurs, the property owner has the right to |
| Improvement Consumer Protection Act. As of | | | | recover thee times actual damages as well as |
| July 1, 2009, the Act requires all contractors who | | | | attorney's fees. |
| perform $5,000 or more in home improvements | | | | Home improvement contractors who don't |
| annually to register with the Attorney General's | | | | comply with the act should be prepared to work |
| office. Registered contractors must now carry at | | | | for free should something go wrong; the owner |
| least $50,000 of personal injury liability coverage | | | | will have them over a barrel. And the fines are |
| and $50,000 of property damage coverage. | | | | tough: if the work is for over $2,000, a violation |
| Registration with the Attorney General only costs | | | | can become a third degree felony. |
| $51, but the new law also affects remodelers in | | | | The Pennsylvania Home Improvement Protection |
| other ways. For instance, due to new | | | | Act may end up misleading remodeling clients who |
| requirements in the consumer-protection laws, | | | | often choose their remodeling contractor based |
| construction contracts in Pennsylvania must be | | | | on bid price. Contractors who don't carry |
| longer and become more detailed. This has a | | | | insurance are unlikely to register with the state. |
| downside to contractors as a 17-page contract | | | | These contractors will have less overhead and will |
| can appear mighty intimidating to a homeowner. | | | | appear attractive to bargain-hunting homeowners |
| The additional contract pages were added to | | | | as they can easily be the low bidder on many |
| include supplementary and updated clauses in | | | | home improvement jobs. Registered contractors |
| Pennsylvania law. For instance, up to now, | | | | are required to carry liability and property damage |
| contractors were required to provide a | | | | insurance, increasing the overhead costs they |
| single-page right-to-rescind clause in their contract. | | | | must add to their bids. |
| The new law identifies specific right-to-rescind | | | | Pennsylvania is unique in its stringent homeowner |
| language that has to appear in 10-point bold type | | | | protection requirements on remodelers and |
| directly above the signature line. The arbitration | | | | contractors. For the contractor it represents a |
| clause isn't enforceable if this right-to-rescind | | | | new burden: not only does he have to carry at |
| notice doesn't appear in 10-point bold type. | | | | least $50,000 of personal injury liability coverage |
| The new act also requires a long list of disclosures | | | | and $50,000 of property damage coverage, he |
| to appear in every contract - such as the start | | | | now has to hand a potential customer a 17-page |
| and finish date, names and addresses of subs, | | | | contract that may be a deal breaker - even if it is |
| insurance coverage, and even a phone number | | | | required by Pennsylvania law. And for this |
| for the Pennsylvania Bureau of Consumer | | | | contract he has to hire a lawyer well-versed in |
| Protection. Without these disclosures, a | | | | the changes in Pennsylvania contract law. The |
| construction contract in Pennsylvania is null and | | | | new law has made Pennsylvania lawyers very |
| void. Even worse, if a home improvement | | | | happy. |