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 <-application fees and 
7for home improvement contracts.

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

1home improvement and the owner will pay the contractor under the
2home improvement contract based on the actual cost of labor at a
3specified hourly rate and the actual costs of materials and use
4of equipment, plus an agreed upon percentage of the total <-actual
5costs or a fixed amount<-, over and above the actual costs, to
6cover the contractor's fee and overhead costs reasonably
7incurred in the performance of the home improvement.

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

<-9Section 2. Sections 5(b)(2) and 7(a)(8) of the act are
10amended to read:

11Section 5. Application fees.

12* * *

13(b) Home Improvement Account.--

14* * *

15(2) The funds in the Home Improvement Account and any 
16interest earned on the funds [may be] are hereby appropriated 
17on a continuing basis to the Attorney General for 
18administering and enforcing the provisions of this act and to 
19protect consumers with respect to home improvements through 
20consumer education and other means.

21Section 7. Home improvement contracts.

22(a) Requirements.--No home improvement contract shall be
23valid or enforceable against an owner unless it:

24* * *

25(8) Includes the total sales price due under the
26contract or includes a time and materials provision wherein 
27contractor and owner agree in writing to the performance of 
28the home improvement by the contractor and payment for the 
29home improvement by the owner, based on time and materials<-, 
30with the contractor's fee, whether a percentage of the total
 

1costs or a fixed amount, being listed separately..<- If the 
2contract includes a time and materials provision:

3(i) The contractor shall provide an initial cost
4estimate in writing to the owner before any performance
5of the home improvement commences.

6(ii) The contract shall state:

7(A) The dollar value of the initial cost
8estimate for the services to be performed under the
9time and materials provision.

10(B) That the cost of the services to be
11performed under the time and materials provision may
12not exceed 10% above the dollar value indicated in
13the initial cost estimate.

14(C) The total potential cost of the services to
15be performed under the time and materials provision,
16including the initial cost estimate and the 10%
17referenced in clause (B), expressed in actual
18dollars.

19(D) A statement that the cost of the services to 
20be performed under the time and materials provision 
21shall not be increased over the initial cost estimate 
22plus a 10% increase without a written change order 
23signed by the owner and contractor.

24* * *

25Section 3. This act shall take effect immediately.