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If the amount of advance payment taken by the contractor is over $2,000, the act is automatically deemed a third degree felony. If the homeowner is 60 years of age or older, the offense will automatically become a second degree felony. There are additional criminal penalties and prohibited behavior identified in the HICPA. Answers to frequently asked questions can be found on the website of the Pennsylvania Office of the Attorney General. HICPA introduces new requirements for home improvement contracts. Specifically, HICPA mandates that in order for a home improvement contract worth more than $500 to be enforceable against an owner, it must be in writing and be signed by both parties.
In issuing its ruling, the court referred to its recent decision in Durst v. Milroy General Contracting, 2012 PA Super 179; 52 A.3d 357, wherein it held that HIPCA does not preclude recovery in quantum meruit on oral contracts. In this instance, there was no question that the Contractor had completed the work, nor that the parties did not have an enforceable contract under HIPCA due to the Contractor’s failure to register in Pennsylvania. As such, since HIPCA does not preclude recovery in quantum meruit, and principles of equity require that the Contractor receive fair compensation for the benefit that its services have conferred on the Owners, the Contractor was entitled to proceed against the Owners in quantum meruit. While it is likely take years for the courts to flesh out the details of the Act and interpret its many provisions, there can be no doubt that the Act will have broad consequences for both home improvement contractors and home owners.
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It appears that the Pennsylvania legislature has heard those stories as well, for on July 1, 2009, a new Home Improvement Consumer Protection Act will take effect in the Commonwealth of Pennsylvania. Seq., is replete with numerous definitions, requirements, prohibitions and penalties. While many lawyers will be spending many hours learning the details of the Act and the interplay between and among its various provisions, we can now report on at least some of the basic details of the Act. HICPA also prohibits contractors from using misleading statements to convince a homeowner to enter into a contract or pay more than the price that was previously agreed upon.
Until you open up a wall, there's no way to be sure what's in a wall cavity. Nearly all surprises on a home improvement job will increase costs. So it's prudent to include a "differing site conditions" clause in every one of your contracts. Nothing in HICPA requires that contractors absorb the loss when something doesn't go as planned.
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That means you're free to follow your conscience when drafting home improvement contracts. Pennsylvania courts imply warranties of habitability and good construction. But your contract can limit the scope or duration of warranty or disclaim those warranties entirely. You'll need help drafting a disclaimer of warranty or putting limits on warranty claims. 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 types of landscaping , painting, doors and windows, and waterproofing.
This law imposes a series of requirements on contractors, including what contractors must include in an agreement with homeowners. Unfortunately, many contractors fail to abide by these rules, which can have financially devastating consequences for a homeowner. It is, however, possible to hold contractors accountable for their unlawful actions, so if you have questions or concerns about your own contractor’s conduct, you should contact an experienced Philadelphia home contractor fraud lawyer who can explain your legal options.
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If you were misled or defrauded by a home contractor, you could be entitled to compensation for your losses. Please contact dedicated home contractor fraud attorney Louis S. Schwartz at CONSUMERLAWPA.com today to learn more about your legal options. If disputes are to be settled by arbitration, the arbitration clause has to be in 12-point bold caps and must specify whether documents will be confidential and whether the arbitrator's decision is final.
Prior to 2009, consumers could bring suit against home improvement contracts under several common law theories, including breach of contract or fraud. Nothing specifically dealt with the numerous so called home improvement contractors who misrepresented themselves as professionals or experts. HICPA imposes a monetary threshold and only governs contracts for which the total cash price of all work agreed upon between the contractor and owner is more than $500. Further, the services must fall within HICPA’s definition of “home improvement,” which includes several categories of services such as repairs, replacements, demolition, removal, renovation and modernization. Further, home improvements extend beyond the home itself, such as the construction improvement of swimming pools, porches, decks, driveways and fences.
A list of subcontractors, each with a phone number and street address (no P.O. Box). HICPA also prohibits misrepresentations regarding the contractor’s identity. Receiving an advance payment and failing to perform. Violation of HICPA can carry both criminal and civil penalties. Home Improvement Fraud is punishable as Felony of the Third degree if the amount exceeds $2,000.00 and as a Misdemeanor of the First Degree, if the amount involved is less than $2,000.00. At the start of the pandemic many contractors were dealing with shutdown orders and reduced staffing requirements, which led to...
The GC sends us a Construction Change Directive. We provide a quote for the additional work but they will not approve the price, they demand the work to be done and only after that will they discuss price. That’s pretty much everything thatmust be included in a home improvement contract in Pennsylvania. But that’s not everything you need to know.
Altering a home improvement contract without the consent of the consumer. The clause shall state whether the facts of the dispute and the decision are confidential. The text must clearly state where the decision of the arbitration is binding or whether or not it can be appealed to Common Pleas. It’s fast, easy, affordable, and done right. I used to think getting paid in 90 days was normal.
Meanwhile, Pennsylvania home improvement contractors should consult with their legal counsel before July 1, 2009 to ensure that they are in compliance with the Act prior to its effective date. Residential and restoration contractors in Pennsylvania should ensure that their contracts meet all of these requirements. Failure to comply with these requirements could lead the contractor to liability under home improvement fraud. In Pennsylvania, contractors working on residential projects need to be aware of the Pennsylvania Home Improvement Consumer Protection Act. This Act has a fair amount of rules and requirements that must be followed on home improvement projects, specifically when it comes to the terms of their contracts.
The PA HICPA is meant to protect homeowners from unscrupulous contractors by requiring registration, and clearly specifies what must and can’t be included in such contracts. The following provisions, if included, shall be voidable by the property owner. If one of the clauses are included in the contract, it doesn’t necessarily render the entire agreement void. A contract that omits any of these provisions cannot be enforced against a consumer. Additionally, while the contract may contain an arbitration clause, that clause must satisfy further statutory requirements, including, among others, that it be printed in twelve-point, bold-faced type and appear on a separate page.
Contractors take unnecessary risk when they guarantee completion as planned, no matter what's in the estimate. There are exceptions for work that will not be considered a “home improvement” under HICPA and to which HICPA does not apply. It is considered fraud if a contractor receives advance payments and then fails to return those payments when he or she inexcusably fails to perform the home improvement services or provide the agreed upon materials. Civilly, violations of HICPA are deemed violations of the Uniform Trade Practices and Consumer Protection Law (“UTPCPL”).
A Consumer’s Guide to Pennsylvania’s Home Improvement Consumer Protection Act
We envision a world where no one in construction loses a night’s sleep over payment. Reprinted with permission from theWinter 2022 Edition of Network Magazine© 2022 All rights reserved. Further duplication without permission is prohibited.
Treat it as though it were item xxii in the list of unfair trade practices. UTPCPL allows a recovery for treble damages or $100 per violation, whichever is greater. Another remedy allowed by the UTPCPL is reasonable attorney’s fees, which may be awarded in addition to any other award, and which may be substantial. The Tri-County Area is no stranger to home improvement contract scams. Anyone who has paid attention to the local newspapers over the past few years will recall the scandals and prosecutions of home improvement contractors gone bad – of contracts not honored, and of unearned deposits not refunded.
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