Pennsylvania’s Home Improvement Consumer Protection Act covers home improvement work at a private residence when the total price is more than $500, and it names roofs in its definition. A contract for that work is not valid or enforceable against the homeowner unless it is written, legible, signed by both sides and contains every item in the list below. The act also limits deposits, gives you three business days to cancel, and requires a signed change order before the work changes.
This page describes what the statute says. It is general information. For a contract you have already signed or a dispute over one, talk to a lawyer.
The 13 required items
| Required in the contract | Section of the act |
|---|---|
| The contractor’s registration number, in a written, legible contract | 517.7(a)(1) |
| Signatures of the owner and of the contractor or its salesperson | 517.7(a)(2) |
| The entire agreement, with copies of all required notices attached | 517.7(a)(3) |
| The date of the transaction | 517.7(a)(4) |
| The contractor’s name, address and phone number; a post office box alone is not an address | 517.7(a)(5) |
| The approximate start date and completion date | 517.7(a)(6) |
| A description of the work, the materials and a set of specifications that cannot change without a written change order signed by both sides | 517.7(a)(7) |
| The total sales price, or a time-and-materials provision that meets the act’s rules | 517.7(a)(8) |
| The down payment and any amount advanced for special-order materials, listed separately | 517.7(a)(9) |
| Names, addresses and phone numbers of all subcontractors known at signing | 517.7(a)(10) |
| A promise to keep liability insurance of at least $50,000 for personal injury and $50,000 for property damage, and the amount in force at signing | 517.7(a)(11) |
| The Attorney General’s toll-free number for checking registrations | 517.7(a)(12) |
| A notice of your right to cancel | 517.7(a)(13) |
The contractor has to give you a completed copy of the contract, with the notices, at no charge when it is signed.
Specifications for a roof
The specifications line matters most on a roof, because it is what a later change order is measured against. A roofing contract that meets it would name the shingle or membrane by manufacturer and product line, the underlayment, the flashing, the ventilation, how many existing layers come off and how damaged sheathing will be handled. Conshohocken’s roof permit addendum asks for most of the same items, which makes it a useful checklist for the contract too.
Deposits
The act bars a contractor from taking any payment before the contract is signed.
For a contract over $5,000, the deposit can be no more than one-third of the contract price. If the contract designates special-order materials, the cap is one-third of the price plus the cost of those materials. The act defines special-order materials as products that are not stock items, are made or processed for that specific job, and cannot be returned for a refund or credit. Misrepresenting an item as special-order, or misrepresenting its cost, is one of the acts the statute defines as home improvement fraud when it is done with intent to defraud.
The deposit cap does not apply to a home improvement retailer that posts an irrevocable letter of credit with the Attorney General and meets the act’s other conditions.
Three business days to cancel
You can cancel a home improvement contract without penalty within three business days of signing it, wherever you signed it. The contract must include a notice of that right. The exception is emergency work under section 7 of the Unfair Trade Practices and Consumer Protection Law.
Change orders
The act prohibits a contractor from departing from the plans or specifications in any material way without a written change order, dated and signed by both the contractor and the owner, that states the price change for each deviation. On a re-roof, the common case is decayed sheathing found during tear-off. The signature on Conshohocken’s roof permit addendum certifies that decayed sheathing found when the old roof comes off will be replaced with the owner’s written approval.
Time-and-materials contracts
A 2014 amendment added rules for contracts priced on time and materials. The contractor must give you an initial written cost estimate before work starts. The contract must state the estimate in dollars, say that the cost may not exceed 10% above it, give the total potential cost including that 10% in dollars, and say that the cost will not rise above the estimate plus 10% without a written change order signed by both sides.
As an example in round numbers, a time-and-materials repair with a $4,000 initial estimate would have to state a total potential cost of $4,400.
Refunds when work never starts
If no substantial part of the work has been done and more than 45 days have passed since the start date in the contract, you can ask for a refund in writing by certified mail with a return receipt. The act requires the contractor to refund the amount paid within ten days after it accepts the letter, or after it refuses the certified mail sent to its last known address.
Clauses you can void
If a home improvement contract contains any of these clauses, the act makes the contract voidable by the owner:
- A hold harmless clause.
- A waiver of federal, state or local health, life, safety or building code requirements.
- A confession of judgment clause.
- A waiver of the right to a jury trial in a suit by or against the owner.
- An assignment of wages.
- A provision under which the owner agrees not to assert any claim or defense arising from the contract.
- A provision awarding the contractor attorney fees and costs.
- A clause relieving the contractor of liability for its conduct while collecting payment or repossessing goods.
- A waiver of any right under the act.
- An automatic renewal provision, unless the contract gives the owner a way to decline by mail and the contractor sends a notice before each renewal, as the act describes.
An arbitration clause is allowed, but it must be printed in capital letters in 12-point bold type on a separate page, have its own signature line for each side, say whether the decision is binding and say whether the dispute and the decision are confidential. A clause that falls short can be declared void by a court if either side asks before arbitration begins.
Before you sign
Compare the contract against the table above. Check the registration number in the Attorney General’s contractor search, as the guide on checking a roofer’s registration describes, and keep your copy with the permit and the insurance certificate.