AN ACT

 

1Amending the act of October 17, 2008 (P.L.1645, No.132),
2entitled "An act providing for the regulation of home
3improvement contracts and for the registration of certain
4contractors; prohibiting certain acts; and providing for
5penalties," providing for the definition of "time and
6materials"; and further providing for home improvement
7contracts.

8The General Assembly of the Commonwealth of Pennsylvania
9hereby enacts as follows:

10Section 1. Section 2 of the act of October 17, 2008
11(P.L.1645, No.132), known as the Home Improvement Consumer
12Protection Act, is amended by adding a definition to read:

13Section 2. Definitions.

14The following words and phrases when used in this act shall
15have the meanings given to them in this section unless the
16context clearly indicates otherwise:

17* * *

18"Time and materials." A construction practice where the
19contractor and owner agree that the contractor will perform the
20home improvement and the owner will pay the contractor under the

1home improvement contract based on the actual cost of labor at a
2specified hourly rate and the actual costs of materials and use
3of equipment, plus an agreed upon percentage of the total costs
4or a fixed amount to cover the contractor's fee and overhead
5costs reasonably incurred in the performance of the home
6improvement.

7Section 2. Section 7(a)(8) of the act is amended to read:

8Section 7. Home improvement contracts.

9(a) Requirements.--No home improvement contract shall be
10valid or enforceable against an owner unless it:

11* * *

12(8) Includes the total sales price due under the
13contract or includes a time and materials provision wherein 
14contractor and owner agree in writing to the performance of 
15the home improvement by the contractor and payment for the 
16home improvement by the owner, based on time and materials, 
17with the contractor's fee, whether a percentage of the total 
18costs or a fixed amount, being listed separately.

19* * *

20Section 3. This act shall take effect immediately.