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PLNA e-News: Protecting Values In Pennsylvania

Bill to Clarify Time and Materials Contract Use Advances

Wednesday, October 01, 2014   (0 Comments)
Posted by: Gregg Robertson
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ContractHARRISBURG - A bill (HB 1543) to clarify how time and materials contracts may be used under the Home Improvement Consumer Protection Act of 2008 advanced in the Pennsylvania Senate, moving it a step closer to final passage. The bill passed the House unanimously in June. 

The 2008 law requires all home improvement contractors, including landscape contractors, to register with the state attorney general and requires specific language to be used in all home improvement contracts.

The bill requires that time and materials contracts contain the following language:

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

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

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

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

The bill also requires that contractors update their registration information with the attorney general within thirty days if any of it changes.

Last, the bill requires that all registration fees paid by contractors be dedicated to the attorney general for enforcement of the Home Improvement law. Now those funds go into the state’s general fund to be used for any state expenditure.

The full text of the bill can be downloaded here.


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