Home Improvement Consumer Protection Act (HICPA) Frequently Asked Questions

1. What is the Pennsylvania Home Improvement Consumer Protection Act ("HICPA")?
2. Who Does HICPA Apply to?
3. Why Do I Need A Contract?
4. What Are the Penalties for Non-Compliance with HICPA?
5. Why Can't I Use My Existing Contract?
6. Where Can I Purchase A HICPA-Compliant Contract?
7. What Contract Documents Packages Are Available?
8. What Do I Get With My Contract Documents Package?
9. Why Is A Separate Monitoring Agreement Included In the Alarm Company Documents Package?
10. Can I See A Copy of the Contract Documents Package Before I Purchase?
11. Can I Modify the Contract Documents Package?
12. Can I Add My Company Name and Logo to the Contract?
13. Can I Share or Distribute the Contract Documents Package to Others Outside of My Direct Business Purposes?
14. Where Can I Find A Copy of the Pennsylvania Home Improvement Consumer Protection Act (HICPA)?
15. Is Any Portion of the Fee for the Contract Documents Package I Choose Refundable?
16. Who Does HICPA Not Apply to?

1. What is the Pennsylvania Home Improvement Consumer Protection Act ("HICPA")?

HICPA is a sweeping new law passed by the Pennsylvania Legislature, which becomes effective July 1, 2009. HICPA mandates that contractors register with the Bureau of Consumer Protection of the Pennsylvania Attorney General (the "Bureau"), and imposes strict requirements on the form and contents of contracts, and many business practices.

2. Who Does HICPA Apply to?

HICPA generally applies to contractors doing at least $5,000 of "home improvement" business annually.

A "home improvement" is defined broadly, and generally includes all work for more than $500 at a private residence or building, or the adjacent land, for:

A) Repair, replacement, remodeling, demolition, removal, renovation, installation, alteration, conversion, modernization, improvement, rehabilitation or sandblasting; or

B) 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, landscaping unless excluded, painting, doors and windows and waterproofing, lighting systems, concrete walkways, the installation of central heating or air conditioning or storm windows or awnings, and the placement of retaining walls, fountains or drainage systems.

3. Why Do I Need A Contract?

HICPA provides that no home improvement contract shall be valid or enforceable against an owner unless, among many other things, it is in writing and legible, contains the home improvement contractor registration number of the performing contractor, and also complies with the many other requirements and prohibitions of HICPA. There are also many other potentially serious penalties for non-compliance with HICPA.

4. What Are the Penalties for Non-Compliance with HICPA?

Penalties for non-compliance with HICPA may include, inter alia: A) All home improvement contracts which do not comply with HICPA are voidable at the option of the owner; B) Criminal prosecutions for home improvement fraud as a misdemeanor or third degree felony for first offenses; C) Civil penalties under the Pennsylvania Unfair Trade Practices and Consumer Protection Law (P.L. 1224, No. 387, December 17, 1968) such as attorneys fees and/or treble damages; and/or D)Revocation by the court of your contractor certificate and registration from the Bureau for a period of five years.

5. Why Can't I Use My Existing Contract?

The contract and/or change order documents you're using now are likely not in compliance with HICPA, and may subject you to the potentially serious penalties for non-compliance under HICPA.

6. Where Can I Purchase A HICPA-Compliant Contract?

HICPA-Compliant Contract Documents Packages are available for license and purchase directly from this website, and may be downloaded in the easily useable and reproducible "PDF" format. We also recommend that you print and retain a copy of the Contract Licensing Agreement from this website for your records.

7. What Contract Documents Packages Are Available?

There are separate packages available, depending on the nature of your business. Currently, both a Contractor's Documents Package, and an Alarm Company Documents Package are available. The Contractor's Documents Package is suggested for use by contractors performing general home improvements to which HICPA applies. The Alarm Company Documents Package is suggested for use by alarm security companies providing sale/installation, lease and/or existing system take over services to which HICPA applies.

8. What Do I Get With My Contract Documents Package?

You will receive a standard form Contract, together with the required statutory Notice of Right to Rescission Form; Change Order Form; Subcontractor Disclosure Form; Description of Work, Materials to be Provided and Specifications Form; and/or Special Payment Terms Form, as may be applicable to the contract package you choose, in the easily useable and reproducible "PDF" format.

9. Why Is A Separate Monitoring Agreement Included In the Alarm Company Documents Package?

Keith R. McCall, the Speaker of the Pennsylvania House of Representatives, advised in a letter dated March 5, 2009, that while HICPA is intended to cover the installation of a home security system, "the law will not cover home security monitoring, which normally occurs after installation." In addition, Alarm Monitoring is not expressly listed as a home improvement under HICPA. Accordingly, a separate contract for alarm monitoring has been included, at no additional charge, in the Alarm Company Documents Package should you choose to make use of it. To view a copy of Speaker McCall's letter, click here [PDF file].

10. Can I See A Copy of the Contract Documents Package Before I Purchase?

Due to the proprietary nature of the Contract Documents Packages, and practical business limitations, we are unable to offer a "pre-view" of the materials before they are purchased.

11. Can I Modify the Contract Documents Package?

Yes, but we would not recommend making any substantive changes to the Contract Documents Package as doing so may violate HICPA and, among other things, render the contract voidable and/or trigger other potentially serious penalty provisions of HICPA.

12. Can I Add My Company Name and Logo to the Contract?

Yes, once you download the Contract Documents Package you may add elements such as your company name and logo in order to personalize them, either yourself or by taking them to a local print shop.

13. Can I Share or Distribute the Contract Documents Package to Others Outside of My Direct Business Purposes?

No. The Contract Documents Packages are to be used solely and exclusively for your own business purposes in connection with your own business. You may distribute or disclose the Contract Documents Package, in the regular course of business, to employees, agents, independent contractors, customers, prospective customers, insurers, or Realtors(r).

14. Where Can I Find A Copy of the Pennsylvania Home Improvement Consumer Protection Act (HICPA)?

You may download or print a copy of HICPA by going to the website of the Pennsylvania Office of Attorney General by clicking this link http://www.attorneygeneral.gov/hic.aspx, and clicking on the "Home Improvement Law" icon. We strongly recommend that you personally read and review the complete HICPA law to ensure that you understand and comply with all of the terms, conditions, requirements and prohibitions of HICPA.

15. Is Any Portion of the Fee for the Contract Documents Package I Choose Refundable?

Due to the proprietary nature of the Contract Package Documents, and practical business limitations, the entire final purchase price is non-refundable.

16. Who Does HICPA Not Apply to?

HICPA does not apply to a person for whom the total cash value of all that person's home improvements is less than $5,000 during the previous taxable year; a home improvement retailer having a net worth of more than $50,000.000 or an employee of that retailer that does not perform home improvements, with certain exceptions as provided by HICPA; the construction of a new home; the sale of goods or materials by a seller who neither arranges to nor performs, directly or indirectly, any work or labor in connection with the installation or application of the goods or materials; the sale of services furnished for commercial or business use or for resale, if the service takes place somewhere other than at a private residence; the sale of appliances, including stoves, refrigerators, freezers, room air conditioners and others which are designed for and are easily removable from the premises without material alteration; any work performed without compensation by the owner of the owner's private residence or residential rental property; any work performed by a landscaper certified by the Department of Agriculture under the act of December 16, 1992 (P.L. 1228, N.162), known as the Plant Pest Act, except to the extent that the work involves any of the following at a private residence: the construction, replacement, installation or improvement of buildings, driveways, swimming pools, porches, garages, roofs, siding, insulation, solar energy systems, security systems, flooring, patios, nondecorative fences, doors, lighting systems, concrete walkways and windows, or the placement of retaining walls, fountains or drainage systems; emergency work pursuant to section 7 of the act of December 17, 1968 (P.L. 1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law; the conversion of existing commercial structures into residential or noncommercial structures; the Commonwealth, or any of its political subdivisions; and the Federal Government.

Note: The information contained in this Frequently Asked Questions section is merely a general summary of some key aspects of the HICPA law and this website. Again, we strongly recommend that you personally read and review the complete HICPA law to ensure that you understand and comply with all of the terms, conditions, requirements and prohibitions of HICPA.

Links:

» Purchase the HICPA Contractor's Document Package

» Purchase the HICPA Alarm Security Company Document Package