Effective on July 1, 2009 the following changes will occur in contractor license requirements.
Everyone who does work in the following jobs around a home must be licensed under the Home Improvement Consumer Act. This is done in writing to the Pennsylvania Bureau of Consumer Protection in the Office of the Attorney General.
Repairing
Replacement
Remodeling
Demolition
Removal
Renovation
Installation
Alteration
Conversion
Modernization
Improvement
Rehabilitation
Sandblasting
Construction
Replacement
Driveways
Swimming pools
Pool houses
Porches
Garages
Roofs
Siding
Insulation
Solar energy systems
Security systems
Flooring
Patios
Fences
Gazebos
Sheds
Cabanas
Certain landscaping
Painting
Doors and windows
Waterproofing
Central heating
Air conditioning
Storm windows
Awnings
These situations do not require licenses
Less Than a $5,000 Job:
If a worker has performed less than $5,000.00 of home improvements during the previous taxable year he or she does not need to be licensed. However, but it is suggested that anyone considering performing more than $5,000 in the coming years should get one now.
New Home Builders:
Any new home builders and building suppliers that do not perform home improvements are exempt from this registration.
Three Business Day Right to Rescission
Under the new law a contractor will be required to meet with a homeowner he or she intend to do business with three (3) business days before the intended commencement of work.
Assuming no holidays intervene is how this new systems works:
If the contract is signed Monday, work can begin on the following Friday
If the contract is signed Tuesday, work can begin on the following Saturday
If the contract is signed Wednesday, work can begin on the following Tuesday
If the contract is signed Thursday, work can begin on the following Wednesday
If the contract is signed Friday, work can begin on the following Thursday
If the contract is signed on Saturday or Sunday, work can begin on the following Friday.
Liability Insurance
Carriers of a contractor license must carry the following insurance:
Personal injury in an amount not less than $50,000.00
Property damaged in an amount not less than $50,000.00
Contracts
Under the new law, any contract that does not meet the requirements of the law will be invalid and unenforceable against the owner
The phone number of the Pennsylvania Bureau of Consumer Protection in the Office of the Attorney General
Scope of work including specifications
Notice of Right of Rescission
Start/Completion date
Change Order notice
Contractor's registration number
Full address of Contractor (not just PO Box)
Notice of Insurance
Deposits/Down Payments
Under the new law the holder of a contractor license will only be able to accept 1/3 of the total contract amount as a deposit/down payment. This must be clearly outlined in the contract.
Lead and Asbestos Abatement
Lead and asbestos abatement contractors require certification.\
Consumers are advised to check for additional local municipal contractor license requirements as contractor laws can differ from county to county. It is also advised to double check with the state's requirements before hiring a contractor.
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