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 procedures for 
7registration as a contractor<-, for application fees and for
8home improvement contracts.

9The General Assembly of the Commonwealth of Pennsylvania
10hereby enacts as follows:

11Section 1. Section 2 of the act of October 17, 2008
12(P.L.1645, No.132), known as the Home Improvement Consumer
13Protection Act, is amended by adding a definition to read:

14Section 2. Definitions.

15The following words and phrases when used in this act shall
16have the meanings given to them in this section unless the
17context clearly indicates otherwise:

18* * *

19"Time and materials." A construction practice where the

1contractor and owner agree that the contractor will perform the
2home improvement and the owner will pay the contractor under the
3home improvement contract based on the actual cost of labor at a
4specified hourly rate and the actual costs of materials and use
5of equipment, plus an agreed upon percentage of the total actual
6costs or a fixed amount, over and above the actual costs, to
7cover the contractor's fee and overhead costs reasonably
8incurred in the performance of the home improvement.

<-9Section 2. Section 4 of the act is amended by adding a
10subsection to read:

11Section 4. Procedures for registration as a contractor.

12* * *

13(c) Reporting of changes in registration information.--Any
14contractor required to register under this act shall update the
15information required to be included in the contractor's
16application for registration within 30 days after any change in
17the required information. No fee shall be required for updating
18the information in an active registration.

19Section <-2 3. Sections 5(b)(2) and Section 7(a)(8) of the act
<-20are is amended to read:

<-21Section 5. Application fees.

22* * *

23(b) Home Improvement Account.--

24* * *

25(2) The funds in the Home Improvement Account and any
26interest earned on the funds [may be] are hereby appropriated
27on a continuing basis to the Attorney General for
28administering and enforcing the provisions of this act and to
29protect consumers with respect to home improvements through
30consumer education and other means.

1Section 7. Home improvement contracts.

2(a) Requirements.--No home improvement contract shall be
3valid or enforceable against an owner unless it:

4* * *

5(8) Includes the total sales price due under the
6contract or includes a time and materials provision wherein 
7contractor and owner agree in writing to the performance of 
8the home improvement by the contractor and payment for the 
9home improvement by the owner, based on time and materials. 
10If the contract includes a time and materials provision:

11(i) The contractor shall provide an initial cost
12estimate in writing to the owner before any performance
13of the home improvement commences.

14(ii) The contract shall state:

15(A) The dollar value of the initial cost
16estimate for the services to be performed under the
17time and materials provision.

18(B) That the cost of the services to be
19performed under the time and materials provision may
20not exceed 10% above the dollar value indicated in
21the initial cost estimate.

22(C) The total potential cost of the services to
23be performed under the time and materials provision,
24including the initial cost estimate and the 10%
25referenced in clause (B), expressed in actual
26dollars.

27(D) A statement that the cost of the services to
28be performed under the time and materials provision
29shall not be increased over the initial cost estimate
30plus a 10% increase without a written change order

1signed by the owner and contractor.

2* * *

3Section <-3 4. This act shall take effect immediately.