Pennsylvania contractor license requirements

Licenses and registrations

Home Improvement Contractor Registration (HICPA)

Anyone who owns or operates a home improvement business or offers, performs or agrees to perform home improvements on private residences in Pennsylvania, including subcontractors and out-of-state contractors.

• When it applies: Exempt if the total cash value of all of that person's home improvements is less than $5,000 during the previous taxable year (73 P.S. 517.2). Home improvement means work where the total cash price agreed is more than $500.
• Good to know: Registration number must appear in ads, contracts, estimates and proposals (format 'PA' plus the number). Commercial work is not covered.

Philadelphia Contractor License (Department of Licenses and Inspections)

Businesses in Philadelphia doing construction, demolition or repair work that does not need a specialized company license.

• Good to know: Businesses that work only on existing one- or two-family dwellings and do no special trade work do not need it; they submit as a Home Improvement Contractor after registering with the state.

What you need to qualify

• Insurance: HICPA registration: personal injury liability of not less than $50,000 and property damage coverage of not less than $50,000. Philadelphia contractor license: general liability $500,000 per occurrence, automobile liability $300,000, and workers' compensation ($100,000 per accident, $100,000 per employee, $500,000 policy limit).
• Business registration: HICPA application asks for business and principal details, other licenses held, a business description and background disclosures (bankruptcies, criminal pleas or convictions).
• Also required: HICPA registrants must report changes (contact, insurance, owners/officers, background information) within 30 days. Philadelphia: each supervisor must show an OSHA 30 safety course completed within five years, and the business must be current on City taxes.

Fees, renewal and continuing education

• Fees: HICPA registration: $100 every two years for new and renewal applications, non-refundable (72 P.S. 1603-U). Updates are free. Philadelphia contractor license: $126 (including a $20 non-refundable application fee), renewed annually for $126.
• Renewal: HICPA registration: every two years. Philadelphia contractor license: annually.
• Continuing education: No state CE for HICPA registration. Philadelphia: supervisors must keep a current OSHA 30 certificate or complete 30 hours of construction or demolition safety continuing education.

Contracts and homeowner protections

Contracts over $500 must be in writing, legible, and signed by the owner and contractor, and must include the registration number, total price, estimated start and completion dates, description of work, and a three-day cancellation notice in the form set by law (73 P.S. 517.7). The owner may rescind within three business days of signing. For contracts over $5,000, a contractor may not take a deposit of more than one-third of the contract price (plus the cost of special-order materials) (73 P.S. 517.9). Time-and-materials contracts must include an initial cost estimate and state that costs cannot exceed it by more than 10% without a signed written change order. No guaranty fund.

Electrical, plumbing and HVAC work

No statewide electrical, plumbing or HVAC license was found on the official pages reviewed. HICPA preserves local licensing standards in effect on July 1, 2009 for trades such as electricians and plumbers. Philadelphia issues separate company licenses for electrical, plumbing and fire suppression work.

City and county rules

Since July 1, 2009, HICPA registration bars political subdivisions from requiring a separate fee, registration or license for home improvement contractors (73 P.S. 517.12), but local governments may still require building permits and enforce building codes. Philadelphia's Department of Licenses and Inspections requires a Contractor License for construction, demolition or repair work outside existing one- and two-family homes.

Working without a license

Failing to register is a prohibited act under HICPA and a violation of the Unfair Trade Practices and Consumer Protection Law; the Attorney General says civil penalties can be $1,000 or more. Home improvement fraud is a third-degree felony if the amount involved exceeds $2,000, or a first-degree misdemeanor if $2,000 or less; the grade goes up one level if the victim is 60 or older (73 P.S. 517.8).

What to confirm with the state

We couldn't confirm these on an official page when we checked. Ask the licensing office before you rely on them:

• The Attorney General FAQ lists both a $100 and a $50 application fee; the registration page's $100 every two years was used.
• Specific penalty for failing to register (summary offense or misdemeanor) was not stated in the text we checked.
• Pittsburgh and other city contractor licensing requirements.
• Official statewide confirmation that Pennsylvania has no state electrical, plumbing or HVAC license.

Sources

1. Home Improvement Contractor Registration - PA Office of Attorney General
2. HICPA Frequently Asked Questions - PA Office of Attorney General
3. HICPA Updates - PA Office of Attorney General
4. Home Improvement Consumer Protection Act (Act 132 of 2008)
5. Home Improvement Contractor Verification - PA Office of Attorney General
6. Get a contractor license - City of Philadelphia