Home Improvement Consumer Protection Act
The Home Improvement Consumer Protection Act will take effect in Pennsylvania on July 1, 2009. The Act affects almost all businesses and persons who perform home improvements, including contractors, subcontractors and independent contractors. The Act requires registration with the Bureau of Consumer Protection in the Attorney General’s Office of most businesses and individuals that had income from home improvement activities of $5,000 or more in the last tax year. The Act also will require written contracts for home improvement work and, further, requires certain specific provisions in those contract. Sanctions for violations of the provisions of the Act include criminal penalties and voiding of contracts.
The term "home improvement" is broadly defined in the Act. It includes activities with an agreed upon price for all work of more than $500 such as (i) repair, replacement, remodeling, and alteration of residences, (ii) construction, replacement, installation or improvement of driveways, porches, garages, roofs, siding, flooring, patios, fences sheds, painting, doors and windows and (iii) certain landscaping activities. The term "home improvement" does not include the construction of a new home.
For any person or firm involved in the business of making home improvements the Home Improvement Consumer Protection Act will have important consequences. It will affect how those firms and individuals do business. If you or any person or business you work with has any questions concerning the Act and would like to discuss the Act in more detail, please do not hesitate to contact Eric Tobin.