What HICPA Covers
The Home Improvement Consumer Protection Act, commonly called HICPA, applies to residential home improvement contracts in Pennsylvania with a total price of more than $500. That covers a wide range of work, including renovations, roofing, siding, additions, decks, driveways, fences, and pools. HICPA requires the contract to be in writing and signed by both the homeowner and the contractor.
What Every Compliant Contract Must Include
HICPA spells out specific terms every compliant contract has to contain. That includes the contractor’s home improvement contractor registration number, the total price and a description of the work, estimated start and completion dates, the deposit amount with any special order materials listed separately, the toll-free number for the Pennsylvania Attorney General’s Bureau of Consumer Protection so homeowners can verify a contractor’s registration, and a notice of the homeowner’s right to cancel the contract within three business days of signing.
Contractors performing $5,000 or more in home improvement work per year are required to register with the Pennsylvania Attorney General’s office and include that registration number on contracts, estimates, and advertising.
The Deposit Rule Most Homeowners Don’t Know About
For contracts over $5,000, a contractor cannot collect more than one-third of the total contract price as a deposit, or one-third plus the cost of any special order materials specifically listed in the contract. A request for a larger deposit without a documented reason is itself a red flag under the law, not just a negotiating point.
What Happens If the Contract Doesn’t Comply
If a home improvement contract is missing terms HICPA requires, it can be void or unenforceable against the homeowner. This protects homeowners from bad actors, but it also means a legitimate contractor who skips the paperwork can end up without solid legal footing if a dispute arises later.
This works in both directions. If you receive incomplete or subpar work, a HICPA violation in the contract can give you real leverage to negotiate a resolution. And if 45 days pass from the contract’s stated start date with no substantial work performed, a homeowner generally has the right to request a refund of any deposit paid.