July 1 Has Passed – Are You Using a PA Home Improvement
Consumer Protection Act (HICPA) Compliant Contract?

 

As of July 1, 2009, Pennsylvania’s new Home Improvement Consumer Protection Act ("HICPA") requires all home improvement contractors to register with the state AND use a HICPA-compliant contract.

What happens if I do not have a HICPA compliant contract?
The law says that (1) a disgruntled customer can report a violation to the Attorney General's Office for prosecution as a crime involving "home improvement fraud," (2) your entire contract may be unenforceable by you if it is not HICPA Compliant, AND (3) use of a noncompliant contract is an "unfair or deceptive act or practice" under Pennsylvania's Unfair Trade Practices and Consumer Protection Law, entitling the customer to seek triple damages plus costs and legal fees.

How do I comply with the law?
You need to register with the state of PA to obtain a HICPA registration number. If you are not already registered,
and you need help with the registration process, please call us toll free at 1-800-345-3033, or email us at register@hicpacompliance.com.

You also need to use a HICPA compliant contract (unless the job is for less than $500, in which case your contract still needs to comply with the Unfair Trade Practices and Consumer Protection Law). To make compliance with the new HICPA requirements simpler for home improvement contractors across PA, HICPA Compliance LLC has developed a 6 page, easy to use contract that is suitable for use by any field in the home improvement industry. This contract is being made available through this website, at an affordable price, to all PA contractors.
Click here to order this easy-to-use contract.

Contract Features:

• 6 pages on 4 sheets of paper!
• Written by Yale Law School graduate, Charles E. Shoemaker Jr., Esquire
• Approved and used by 35-year building industry veteran, Frank A. Alexander
• HICPA Compliance Requirements Of:
• - Your Contractor's Registration Number
• - Toll-free telephone number of the PA Bureau of Consumer
     Protection of the Office of the Attorney General
• - Your full street address
• - Approximate start and completion dates
• - Scope of work, materials to be used and specifications
• - Your property damage and liability insurance limits
• - "Three Business Day Right of Rescission Notice" attachment
     (in duplicate - satisfying both HICPA and UTPCPA)
• - Payment Schedule
• - Change Order notice
• - Space for signing and dating by you and the customer
• - Required language that the contract states:
• - The agreement in its entirety
• - The total sales price
• - The amount of the down payment
• - The amount advanced for the purchase of special order materials
     (and list of such materials)
• - Plus the optional:
• - Subcontractor attachment with the required information
• - Arbitration clause in 12-point bold caps

AND the terms developed and currently used by a 35-YEAR VETERAN OF THE HOME IMPROVEMENT INDUSTRY:

• Delays beyond the Contractor’s Control
• Payment for Special Order Materials
• Payment Due Date
• Interest Due on Unpaid Invoices
• Governing Law
• Permits
• Utilities
• Recovery of Lost Profits
• Publicity Release
• Limited Warranty
• Changes in Material Costs
• Substitution of Materials

This contract package also includes Change Order forms and complete instructions for proper completion!

For more information, or to find out if you need a registration number and contract, visit our Questions Page.
To learn more about the PA Home Improvement Consumer Protection Act (73 P.S. §§517.1 - 517.19),
visit Pennsylvania Attorney General Tom Corbett’s website.