Over the weekend I overheard a conversation about home contractors: “I found a way to get my contractor to call me back. I told him I had his deposit check ready to pick up.” That snatch of conversation highlights one of the complaints that people may have about some home contractors – they are not good at returning calls. Personally, I have had that experience, but I have had many more positive experiences with good professional contractors who return their calls at the end of the day, and do the work that they say they are going to do, and meet me when they say they are going to meet me. However, for the bad apples, the Pennsylvania legislature is trying to be proactive, and in 2008 passed a new law relating to home contractors. The law took effect in 2009, and the state attorney general is beginning to enforce the law this year.
The Pennsylvania Home Improvement Consumer Protection Act requires virtually all contractors who do “home improvements” (generally any work done at a person’s home with a contract price of more than $500) to register with the State Attorney General. The registration seems fairly simple. It requires some basic contact information on the contractor, but also asks them to report (among other things) on whether they have ever been convicted of a crime relating to home improvement fraud, whether they have been bankrupt, and whether in the last ten years they have had a judgment entered against them related to a home improvement transaction. The act also requires them to show proof of insurance. The contractor is issued a registration number, and then must use that number in all of its advertisements, contracts, estimates and proposals. The law also provides certain minimum requirements for what must be in a contractor’s contract. If any of the items are missing, then the contract is not enforceable. The consumer is allowed to rescind the contract within three business days of signing it. If the contract requires mandatory arbitration of disputes, the arbitration clause must meet certain requirements. If the contract contains certain clauses (generally various waivers, hold harmless clauses and one sided clauses in favor of contractor), then the whole contract can be voided by the home owner. If the contractor does not start work in a certain amount of time, you can cancel the contract. The Act also defines certain actions as felonies or misdemeanors, and permits enforcement at the county level, and at the state level for those contractors working in more than one county. A violation of this Act is also considered a violation of the state’s Unfair Trade Practices and Consumer Protection Law, which permits the consumer to sue the contractor for triple damages plus attorneys fees.
So how does this affect you, as a home owner asking a contractor to do work at your home? You should check to see if your particular contractor is registered by going to the AG’s website at: http://www.attorneygeneral.gov/hicsearch/, or by calling the Home Improvement Registration Hotline at 1-888-520-6680. You have a three day right of rescission if you change your mind. If during the course of the work, you become unhappy with the work, the law has so many different requirements that a lawyer may be able to find deficiencies in the contract that may permit you to terminate it. If there are clear violations of the law, you have a variety of civil and criminal remedies. It is a very consumer oriented law.
The website for the Attorney General states that they are starting to staff up to enforce the law, noting that lawsuits have recently been filed “against seven contractors accused of failing to start work, collecting excessive down-payments, not finishing projects, performing work in a shoddy manner, failing to pay refunds, not honoring warranties and other violations of the state's Home Improvement Consumer Protection Act.” More information is available at their website.
The law cannot resolve all disputes among owners and contractors, and cannot force them to communicate well and return phone calls, but it may well scare away some of the worst past violators from registering, and it provides powerful remedies for consumers. When considering a contractor, it is always a good practice to get quotes from several of them. Check on their registration. Ask to see their insurance coverages. Request references and then check on them. And as with any pitch, if something sounds too good to be true, it probably is. Don’t get swindled by special offers and high pressure sales tactics. Professional contractors want your business, but they want you to be happy with the work they do as well. They want you to be a good reference for them. The best way to have a good working relationship with your contractor is to hire a good one from the start.
The law cannot resolve all disputes among owners and contractors, and cannot force them to communicate well and return phone calls, but it may well scare away some of the worst past violators from registering, and it provides powerful remedies for consumers. When considering a contractor, it is always a good practice to get quotes from several of them. Check on their registration. Ask to see their insurance coverages. Request references and then check on them. And as with any pitch, if something sounds too good to be true, it probably is. Don’t get swindled by special offers and high pressure sales tactics. Professional contractors want your business, but they want you to be happy with the work they do as well. They want you to be a good reference for them. The best way to have a good working relationship with your contractor is to hire a good one from the start.
©2010 Douglas P. Humes
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