The law covers repairs, remodeling, roofs, siding, windows, decks, fences, driveways, painting, waterproofing and central heating or air conditioning at a private home. It doesn't cover building a new home.
What the contract has to include
Section 7 of the Act lists the required terms:
- The contractor's registration number, and signatures from you and the contractor or its salesperson.
- The date, and the contractor's name, address and phone number. A post office box alone doesn't count as an address.
- Approximate start and completion dates.
- A description of the work, the materials and the specifications, which can't change without a written change order signed by both of you.
- The total price, or a time-and-materials provision that meets the rules below.
- The down payment and any money for special-order materials, listed separately.
- Names, addresses and phone numbers of every subcontractor known when you sign.
- The contractor's agreement to carry at least $50,000 of personal injury liability insurance and $50,000 of property damage insurance, and the coverage it has right now.
- The Bureau of Consumer Protection's toll-free number, 1-888-520-6680, and a notice of your right to cancel.
The contractor must give you a completed copy at signing, free. It also can't demand or take any payment before the contract is signed.
Time-and-materials jobs
Hourly or cost-plus pricing is allowed. The contractor must give you a written initial cost estimate before work starts. The contract must state that estimate in dollars, say the cost can't go more than 10% above it, and show the total possible cost. On a $10,000 estimate, that ceiling is $11,000. Anything beyond it needs a written change order you both sign.
Your right to cancel
You can cancel a home improvement contract without penalty within three business days of signing, wherever you signed it. In a case brought by the Attorney General's office, the Pennsylvania Supreme Court ruled that the cancellation doesn't have to be in writing. The AG's May 1, 2026 announcement says you can cancel by phone, in writing or in person, as long as the contractor actually gets notice. A dated email or letter is still the easiest way to prove you did it.
There's an exception for emergencies you call about, such as a burst pipe. To have you give up the three-day right, the company has to hand you a written estimate and an Emergency Work Authorization form. State law says that form must be a preprinted card at least 4 by 6 inches, in at least 10-point bold type, and you sign it. Don't sign one for work that isn't a real emergency.
Clauses that let you void the contract
A contract is voidable by you if it contains a hold harmless clause, a waiver of health, safety or building code requirements, a confession of judgment clause, a waiver of your right to a jury trial, or an assignment of your wages.
An arbitration clause is allowed only if it's in capital letters, in 12-point bold type, on its own page, with a separate signature line for each of you, signed and dated the day the contract is signed. A court can throw out a clause that doesn't meet those rules.
Philadelphia, Bucks and Montgomery County
Since July 1, 2009, counties and towns can't run their own home improvement contractor registration. In Philadelphia, a company that only works on existing one- or two-family homes and doesn't need a trade license registers with the state and then submits to the City as a Home Improvement Contractor to pull permits. Other construction, demolition or repair businesses need a City Contractor License from the Department of Licenses and Inspections, and electrical and plumbing work need their own trade licenses.
Permits are separate from the contract. Ask who is pulling them and get the permit number. How to track a Philadelphia permit application or inspection shows where to look it up, and When a Philadelphia project needs a zoning permit as well as a building permit covers the second approval some jobs need. In Bucks or Montgomery County, permits come from your township or borough.
Before you sign
- Look up the registration number with the Attorney General's online contractor search or by calling 1-888-520-6680.
- Ask for the insurance certificate and match the amounts to the contract.
- Check that the deposit and special-order materials are listed separately, and that a job over $5,000 stays within the deposit cap.
Photos and notes make quotes easier to compare. See What to photograph before asking for a home repair estimate. If a contractor breaks these rules, you can file a complaint with the Attorney General's Bureau of Consumer Protection. The AG's office says its FAQ isn't a legal opinion, so talk to a private attorney about a specific dispute.