Local Contractors Must Register With State

A new law now makes it mandatory for contractors working in Pennsylvania to register if they want to do business.

The law is known as the Home Improvement Consumer Protection Act 132. It was passed as a means of safeguarding homeowners from contracting work being done by scam or substandard laborers.

The new law states “No person shall hold himself out as a contractor, nor shall a person perform any home improvement without first registering with the bureau, as provided for in this act.”

“We have worked to ensure that the registration process is as quick and easy as possible. Registration may be completed online or by mailing an application to our office,” Pennsylvania Attorney General Tom Corbett said.

Jamison Colwell has operated his West Kittanning contracting business for the last four years. Although the July 1 deadline in more than a month away, Colwell already has his certificate.

“I went online and filled out the application. They email you back a temporary certificate and then you get the real one in the mail,” Colwell said.

David Miller of Worthington is a second-generation general contractor. His father, Luis, started the business in the fall of 1950. “We are in process of applying right now,” he said. “We will be fully compliant. We are all for it.”

The law specifically describes home improvement: Repair, replacement, remodeling, demolition, removal, renovation, installation, alteration, conversion, modernization, improvement, rehabilitation or sandblasting; 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 work, painting, doors and windows and waterproofing; and the installation of central heating, air conditioning, storm windows or awnings.

Contractors doing more than $5,000 of work annually must register. Any home improvement contractor who is not registered by July 1, 2009, is prohibited from offering or performing home improvements. The failure to register is a violation of the law and unregistered contractors face legal action, including civil penalties of $1,000 or more.
LM Enterprises owner Mike Bartosiewicz of Rural Valley has been in business for fifteen years. He is concerned the law doesn’t go far enough. “I get involved in jobs other people started and their work was substandard,” he said. “I charge a decent price for my work. I have to pay comp insurance. Hopefully (the law) will weed out all the other guys that are undercutting me and shortchanging the customer.”

Colwell is also concerned. “I don’t have a problem with what the State is doing, but think it will backfire and hurt the contractor,” he said. “If people don’t register, who is going to do anything about it? It still boils down to money. If someone underbids me by $1,000, they get the job. If people don’t care about hiring a registered contractor, it hurts good people like me.”

“It is all about accountability,” Miller said. “We have been pro-active in the building industry. We have been a Better Business Bureau members for years. There is no hesitancy on our part to welcome it.”

The new law requires specific information to be contained in contracts between the home owner and contractors. The list includes the following:

èThe home improvement contractor registration number of the performing contractor must be on all contracts;
èContracts must contain the approximate starting date and completion date;
èContracts must include a description of the work to be performed, the materials to be used and a set of specifications that cannot be changed without a written change order signed by the owner and the contractor;
èContracts must include the total sales price due under the contract and the amount of any down payment plus any amount advanced for the purchase of special order materials. The amount of the down payment and the cost of the special order materials must be listed separately;
èContractor must agree to maintain liability insurance covering personal injury in an amount not less than $50,000 and insurance covering property damage caused by the work of a home improvement contractor in an amount not less than $50,000 and identifies the current amount of insurance coverage maintained at the time of signing the contract.

The law also gives specific provisions for home owners disputing the work of a contractor. Contractors who fail to respond to customer complaints could have their registration revoked.

“We have always vehemently welcomed customer feedback,” Miller said. “It is just another step in proving that we are there when other contractors may falter.”

“If home owners have a problem, they can go after contractor,” Colwell said. “I am afraid the homeowner won’t give the contractor a chance to justify the problem. If one of my customers has a problem, I fix it. I think it will create a lot of problems for us who do take care of our customers.”

Bartosiewicz feels that small contractors who do their job are safe. “I constantly communicate with my customers,” he said. “If there is a problem, we review it together and work it out.”

When hiring a contractor, home owners should now ask for their State Registration Number during negotiations. As a matter of precaution, never let a contractor begin without a written contract.

“We have always had written contracts,” Miller said. “We wouldn’t think of doing anything without one to insure clarity and satisfaction.”

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