Audience: Residential home‑improvement contractors and specialty trades.
Why this matters: If your contracts don’t meet HICPA requirements, you risk voidable agreements, civil liability, and criminal home‑improvement fraud exposure.
What Is HICPA?
The Home Improvement Consumer Protection Act (HICPA) is a Pennsylvania consumer‑protection statute effective July 1, 2009. It requires registration with the PA Office of Attorney General, sets minimum insurance, mandates specific contract terms, restricts certain clauses, and creates criminal penalties for home‑improvement fraud. [attorneygeneral.gov]
Scope: HICPA applies to home improvements ≥ $500 at private residences (repair, remodel, painting, landscaping*, decks, roofs, siding, waterproofing, etc.). It does not cover new home construction or purely commercial work. (Certain Department of Agriculture‑certified landscaping is excluded.) [attorneygeneral.gov], [attorneygeneral.gov]
Must‑Have HICPA Contract Terms (Don’t Skip These)
A home‑improvement contract is not enforceable unless it is written and includes, at a minimum:
- Contractor’s legal name, street address (no P.O. Box), and phone;
- Contractor’s PA registration number (e.g., PA123456) displayed on the contract;
- Transaction date, approximate start/finish dates;
- Detailed scope with materials/specs and change‑order procedures;
- Total price, down payment, and any special‑order materials amounts;
- List of known subcontractors (name, address, phone) at signing;
- Proof/statement of liability insurance (≥ $50,000) or self‑insurance disclosure;
- Bureau of Consumer Protection toll‑free number and 3‑business‑day rescission notice;
- Special formatting rules for arbitration clauses (separate page, capital letters, 12‑point type, bilateral). [phfa.org], [tupitzalaw.com]
Deposit limits: For contracts over $1,000, the deposit may not exceed one‑third of the price (plus special‑order materials). [buckscounty.gov]
Voidable clauses: Hold‑harmless, confession of judgment, assignment of wages, or waivers of health/safety codes can render the contract voidable by the owner. [tupitzalaw.com]
Registration & Advertising Rules
Contractors (and qualifying subs) must register with the AG; the registration number must appear on contracts, estimates, proposals, and advertisements. Registration is valid for two years. [phfa.org]
Subcontractor Management Under HICPA + CWMA
If you’re a painting contractor in Harrisburg hiring subs, an excavator in Lebanon bringing in trenching crews, or landscape contractors in Lancaster bringing on paver installers:
- Verify AG registration for every home‑improvement subcontractor you present to a homeowner at signing; include their name/address/phone in the contract (and update via written change orders). [phfa.org]
- Display your PA number everywhere—contracts, proposals, ads, truck wraps, and website. [attorneygeneral.gov]
- Integrate CWMA criteria into sub onboarding (written subcontracts, proof of $50,000+ liability insurance, independence factors). [legis.state.pa.us], [job-discri…nation.com]
Fraud & Penalties
HICPA establishes criminal home‑improvement fraud for misrepresentation, taking deposits without performing, concealing identity, etc., with enhanced penalties when victims are 60+. Courts can revoke or suspend a contractor’s certificate. [buckscounty.gov]
Igloo Insurance Checklist for HICPA‑Safe Contracts
- Contract template refresh with all HICPA items (we’ll include your PA number and rescission language). [phfa.org]
- Sub roster captured at signing + change‑order workflow. [phfa.org]
- Insurance proof: We track GL certificates (≥ $50,000) for you and your subs. [phfa.org]
- Ad compliance: Add your registration number to every ad asset. [attorneygeneral.gov]
Resources: Download the statute and AG FAQs here:
- Statute text (PDF): Act 132—HICPA
- AG Contractor FAQ (registration & contract terms): Attorney General FAQ