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PA Home Improvement Contract Law: What Must Be in It

The thirteen things Pennsylvania law requires in a home improvement contract, the clauses that make it voidable, and what to do when yours is missing something.

Berks Connect Blog|Published October 10, 2026
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Pennsylvania's home improvement law lists thirteen things your contract has to contain, from the contractor's registration number to a notice of your right to cancel. The law says a contract missing any of them isn't valid or enforceable against you, though that doesn't make work already done free. Hold the paper up to that list tonight and ask the contractor to add anything that's missing before you sign. If you're still deciding who'll do the work, our list of general contractors in Berks County is a good place to compare.

Say you live in Spring Township and the kitchen remodel contract is open on your phone the night before you sign. Most of what the law asks for is plain stuff, like names, dates and prices.

Which home projects Pennsylvania's contract law covers.

The law is the Home Improvement Consumer Protection Act. It covers work on a single-family house, a building with no more than two units, or one unit such as a condo, when the job costs more than $500. It doesn't cover building a new home, and some emergency work falls under a separate rule instead. A covered contract has to be in writing and signed by both you and the contractor.

What a Pennsylvania home improvement contract has to include.

The law says no home improvement contract is "valid or enforceable against an owner" unless it has all thirteen of these:

  1. It's in writing, legible, and shows the contractor's registration number. That's the number the state gives a registered home improvement contractor, starting with PA, and it has to belong to the contractor doing the work.
  2. It's signed by you and by the contractor. Someone acting for you can sign on your side, and a salesperson can sign for the contractor.
  3. It contains the entire agreement, with copies of every required notice attached, such as the cancellation notice in item 13. If you agreed to something, it belongs on this paper.
  4. It has the date of the transaction.
  5. It has the contractor's name, address and phone number. A post office box alone doesn't count as an address.
  6. It has approximate starting and completion dates.
  7. It describes the work, the materials, and a set of specifications. The specifications can't change without a change order, which is a written change to the contract signed by both of you.
  8. It has the total sales price, or a time-and-materials provision. That second kind has its own rules, covered below.
  9. It shows the down payment and any money advanced for special-order materials, listed separately. Special-order materials are things ordered just for your job that the contractor can't return. No payment can be asked for or taken before the contract is signed, and on a contract over $5,000 the deposit generally can't be more than one-third of the price, or one-third plus the cost of special-order materials the contract names.
  10. It names every subcontractor known on the day it's signed, with addresses and phone numbers. A post office box alone isn't an address.
  11. It says the contractor will carry liability insurance. That's at least fifty thousand dollars for personal injury and fifty thousand for property damage caused by its work ($50,000 each), and the contract states how much coverage the contractor has on the day you sign.
  12. It gives the state's toll-free number for checking a contractor's registration, 1-888-520-6680.
  13. It includes a notice of your right to cancel. The law calls this the right of rescission.

When you sign, the contractor has to hand you a completed copy, free, with the notices in it. For the contractor's side of this list, see the estimate a contractor should hand you.

How to check a contractor's registration number.

Anyone doing home improvement work in Pennsylvania has to register with the Attorney General's office, unless their home improvement work came to less than $5,000 in the previous tax year. The number goes on every ad, estimate, proposal and contract.

You can look it up on the Attorney General's online contractor search or by calling 1-888-520-6680. We walk through the lookup in how to check a contractor's registration.

What a time-and-materials contract has to say.

A time-and-materials contract bills the hours worked at a set hourly rate, plus the cost of materials and equipment, plus an agreed percentage or fixed amount for the contractor's fee and overhead, instead of one total price.

Before any work starts, the contractor gives you a written cost estimate. The contract has to state that estimate in dollars, say the cost can't go more than 10% above it, and state the total potential cost in dollars. So on a $20,000 estimate, the contract should say the cost can't pass $22,000, and that it can't rise past that without a change order signed by both of you.

On any contract, the contractor can't depart from the plans or specifications in any material way without a change order, dated and signed by both of you, showing the price change.

Which clauses make a home improvement contract voidable?

Some clauses make the whole contract voidable, which means you can choose to cancel it. That's separate from your right to cancel within three business days of signing (see the questions at the end), because it comes from what's written in the contract, not from when you signed. Look for these:

  • a hold harmless clause
  • a waiver of federal, state or local health, life, safety or building code requirements
  • a confession of judgment clause
  • a waiver of your right to a jury trial in any lawsuit by or against you
  • an assignment of, or order to pay, wages or other pay for services
  • a promise from you not to raise any claim or defense arising out of the contract
  • a clause giving the contractor attorney fees and costs
  • a clause releasing the contractor from liability for what it or its agents do while collecting payments or repossessing goods
  • a waiver of any right the law gives you
  • automatic or recurring renewal of any part of the agreement, unless the contract meets the law's conditions for it

You don't need to know what each phrase means legally. If one of them is on your paper, ask for that line to come out before you sign, and if you can't tell whether a line counts, that's a question for a lawyer before you sign.

An arbitration clause has its own rules. It has to be in capital letters, 12-point bold, on a separate page, with a separate line for each of you to agree to it, and signed and dated by both of you the day you sign. It also has to say whether the decision is binding or can be appealed to the Court of Common Pleas, and whether it's confidential. If an arbitration clause misses any of those rules, a court treats that clause as void when either of you asks before the arbitration starts.

What to do when your contract is missing something.

Before you sign, point to the missing item and ask the contractor to add it.

If you've already signed, "not enforceable against an owner" doesn't make the work free. In 2014 the Pennsylvania Supreme Court held that a contractor whose contract was invalid could still recover the reasonable value of its work, meaning it could still be paid what the work was reasonably worth. This is general information about the law, not legal advice, and a question about your own contract belongs with how to find a lawyer in Berks County for your problem.

Three things aren't on the list at all, so ask for each in writing: who applies for the permit, a schedule for paying the balance, and a warranty. Who can apply for a permit differs by municipality, so ask your own township or borough office and have the contract say who's applying. Three examples: the City of Reading takes electrical, plumbing and mechanical applications from holders of a contractor's license issued by its Building and Trades Division, Exeter Township from the owner of record or someone with written authorization, and Muhlenberg Township from homeowners or licensed contractors.

Under Pennsylvania's consumer protection law, failing to honor a written warranty is an unfair practice, so get the warranty on paper.

To compare another contractor's paperwork, start with our list of general contractors in Berks County.

Where Berks County homeowners can get help with a contractor contract.

The Attorney General's Bureau of Consumer Protection takes complaints online or by mail, and calling 1-800-441-2555 from inside Pennsylvania gets a complaint form mailed to you. It tries to mediate, though mediation is voluntary for the business and isn't binding.

Closer to home, Mid-Penn Legal Services in Reading (610-376-8656) and the Berks County Bar Association's lawyer referral program (610-375-4591) are two places to start.

Read your contract against the thirteen items tonight, ask for what's missing, and sign once it's all there. Our guide to hiring home services in Berks County covers the rest of hiring.

Frequently asked questions.

Can you cancel a home improvement contract after signing in Pennsylvania?

Yes, within three business days of signing and without penalty, wherever you signed, except for a narrow kind of emergency work. If the contractor didn't give you the written cancellation notice, the entire contract may be voidable even after the three days.

Does a registration number mean a contractor is good at the work?

No. Registration isn't an endorsement of a contractor's competency or skill.

Does a job of $500 or less fall under this law?

No. The law covers jobs that cost more than $500, so a job of $500 or less is outside it.

Does the law say how to pay the balance?

No. The Attorney General's office suggests negotiating payments as the work progresses, with a final payment when the job is done.

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