Pennsylvania Homeowner-Contractor Agreement

Instructions — not part of the agreement

How to Use This Template

This template was built by jaspector.com to help Pennsylvania homeowners protect themselves when hiring a contractor. It covers the key provisions required by Pennsylvania law, including deposit limits, cancellation rights, and mechanics' lien protections.

Before You Start

1. Verify the contractor's registration. Use the PA Attorney General Home Improvement Contractor Registration page to confirm the contractor is registered and the legal business name matches. See our Pennsylvania registration lookup guide for step-by-step help.
2. Download and print this document. Fill in all blank fields — do not leave any section empty. Pennsylvania law requires a completely filled-in contract before work begins.
3. Review each Pennsylvania callout box. These boxes highlight state-specific legal protections. Read them carefully — they explain your rights as a homeowner.
4. Both parties sign. You and the contractor each get a signed copy before any work starts.
5. Consult an attorney. This template is a starting point. For large projects or complex scopes, have a Pennsylvania-licensed attorney review the agreement.

Field-by-Field Guide

• › Section 1 (Parties): Fill in the legal names exactly as they appear on official documents. The contractor's PA Attorney General registration number is required for work of $5,000 or more.
• › Section 2 (Scope): Be as specific as possible. "Kitchen remodel" is not enough — list materials, dimensions, finishes, and what is excluded.
• › Section 3 (Payment): Pennsylvania caps your down payment at one-third (1/3) of the contract price. Tie every payment to a completed milestone, not a calendar date.
• › Section 4 (Timeline): Get start and completion dates in writing. Fill in the delay penalties — these protect you if the contractor falls behind.
• › Section 7 (Warranties): Fill in the warranty period. One year is common; negotiate for more on major work.
• › Section 14 (Exhibits): Attach all plans, specs, and the contractor's registration printout. Check each box for what you are including.
• › Registration threshold: Contractors performing home improvement work of $5,000 or more per year must register with the PA Office of Attorney General (73 P.S. 517.7).
• › Deposit cap: The down payment may not exceed one-third (1/3) of the total contract price (73 P.S. 517.7(a)(8)).
• › Cooling-off period: For door-to-door sales (contracts signed at your home or away from the contractor's office), you have 3 business days to cancel (73 P.S. 201-7; FTC Cooling-Off Rule, 16 CFR 429).
• › Mechanics' liens: Contractors must file a lien claim within 6 months of completion. For residential properties of 4 units or fewer, subcontractors must serve a Preliminary Notice of Furnishing (49 P.S. 1501(a)).
• › Local licensing: Many Pennsylvania municipalities (including Philadelphia, Pittsburgh, and many boroughs) require separate local contractor licenses. Check with your local building department.
• › Contractor registration verification: Verify the contractor's PA Attorney General registration at attorneygeneral.gov before signing. Confirm the registration is current and the legal business name matches the contract.
• › Permits: The contractor should pull permits for the work they are performing. Many municipalities require local contractor licenses or registrations in addition to the state AG registration. Confirm with your local building department.
• › Payment law (73 P.S. 517.7(a)(8)): The down payment may not exceed one-third (1/3) of the total contract price. Subsequent payments should be tied to work completed, not calendar dates.
• › Change orders (73 P.S. 517.7(a)): All changes to a home improvement contract must be in writing. If a contractor performs extra work without a signed change order, the homeowner is not obligated to pay for it.
• › Workers' compensation: Pennsylvania law requires employers to carry workers' compensation insurance (PA Workers' Compensation Act, 77 P.S. 1 et seq.). Verify the contractor's coverage. Contractors who claim to have no employees should confirm sole-proprietor status. The PA Home Improvement Consumer Protection Act does not mandate a contractor bond, but homeowners may request proof of bonding as an additional protection.
• › Three-day right to cancel (73 P.S. 201-7 / FTC 16 CFR 429): If the contract was solicited at the homeowner's residence or away from the contractor's permanent place of business, the homeowner may cancel within three (3) business days without penalty. The contractor must provide a written cancellation notice form at signing. Failure to provide this notice violates the PA Unfair Trade Practices and Consumer Protection Law (73 P.S. 201-1 et seq.) and may extend the cancellation period.
• › Attorney General complaints: Homeowners may file a complaint with the PA Office of Attorney General Bureau of Consumer Protection at any time. File at: attorneygeneral.gov/submit-a-complaint. Phone: 1-800-441-2555.
• › Mechanics' lien protections (49 P.S. 1101 et seq.): Pennsylvania allows contractors, subcontractors, and material suppliers to place a mechanics' lien on your property if they are not paid. A contractor must file a lien claim within six (6) months of completion. For residential properties of four units or fewer, subcontractors and suppliers without a direct contract with the homeowner must serve a Preliminary Notice of Furnishing before they can file a lien claim (49 P.S. 1501(a)).
• › Contract requirements (73 P.S. 517.7(a)): Pennsylvania law requires home improvement contracts to include: the contractor's legal name, address, and registration number; a description of the work and materials; the total price and payment schedule; approximate start and completion dates; three-day cancellation notice (if applicable); a statement of AG registration; the contractor's phone number; and the total down payment amount (not exceeding 1/3 of contract price).
• › Notice to owner: "You are entitled to a completely filled in copy of this agreement, signed by both you and the contractor, before any work may be started." (73 P.S. 517.7(a))
• › Section 1 (Parties): Fill in the legal names exactly as they appear on official documents. The contractor's PA Attorney General registration number is required for work of $5,000 or more.
• › Section 2 (Scope): Be as specific as possible. "Kitchen remodel" is not enough — list materials, dimensions, finishes, and what is excluded.
• › Section 3 (Payment): Pennsylvania caps your down payment at one-third (1/3) of the contract price. Tie every payment to a completed milestone, not a calendar date.
• › Section 4 (Timeline): Get start and completion dates in writing. Fill in the delay penalties — these protect you if the contractor falls behind.
• › Section 7 (Warranties): Fill in the warranty period. One year is common; negotiate for more on major work.
• › Section 14 (Exhibits): Attach all plans, specs, and the contractor's registration printout. Check each box for what you are including.

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The instructions above are provided by jaspector.com as an educational resource. They are not part of the agreement, do not constitute legal advice, and do not create an attorney-client or endorsement relationship.

Homeowner (Property Owner)

Contractor

2.1 Project Description

Describe the work in specific, measurable detail. Include materials, methods, dimensions, and reference any plans, drawings, or specifications attached as exhibits.

2.2 Work NOT Included

Explicitly list work excluded from this contract to prevent scope disputes.

2.3 Permits and Inspections

• Contractor is responsible for obtaining all required building permits
• Contractor is responsible for scheduling all required inspections
• Permit costs are: Included in contract price / Billed separately at cost

2.4 Plans and Specifications

• Attached as Exhibit A (architectural / engineering plans)
• Attached as Exhibit B (material specifications)
• No formal plans — scope defined by Section 2.1 above

3.1 Total Contract Price

3.2 Payment Schedule

3.3 Payment Terms

• ›Payments are due within days of written invoice
• ›Acceptable payment methods:
• ›No payment shall be due for work not yet performed or materials not yet delivered to the job site
• ›Final payment is due only after: (a) all work is complete, (b) final inspection is passed (if applicable), and (c) Homeowner has had reasonable opportunity to inspect

4.1 Delays

• ›Contractor shall notify Homeowner in writing within 48 hours of any event that may delay the project
• ›Excusable delays include: weather, permit delays, material shortages, acts of God, government orders
• ›Non-excusable delays exceeding business days entitle Homeowner to a daily credit of $
• ›If the project is not substantially complete within days of the estimated completion date (excluding excusable delays), Homeowner may terminate under Section 9

Any changes to the scope, price, or timeline of this contract must be documented in a written Change Order signed by both parties before the changed work begins.

Each Change Order shall include:

1. Description of the changed work
2. Addition to or deduction from the contract price
3. Impact on the project timeline
4. Signature of both Homeowner and Contractor

No verbal agreements will modify this contract.

6.1 Materials

• ›All materials shall be new unless otherwise specified in writing
• ›Substitutions require prior written approval from Homeowner
• ›Contractor warrants that all materials comply with applicable building codes

6.2 Workmanship Standards

• ›All work shall be performed in a professional, workmanlike manner
• ›All work shall comply with applicable Pennsylvania building codes and local ordinances
• ›All work shall conform to the plans, specifications, and scope described in this contract
• ›Contractor shall maintain a clean and safe job site

6.3 Subcontractors

• ›Contractor use subcontractors (will / will not)
• ›If subcontractors are used, Contractor remains fully responsible for their work, licensing, and insurance
• ›All subcontractors performing work that requires a state license must hold a valid, active license
• ›Homeowner may request state license numbers for any subcontractor working on the project

7.1 Contractor Warranty

Contractor warrants all labor and workmanship for a period of year(s) from the date of completion. During this period, Contractor shall repair or correct, at Contractor's expense, any defects in workmanship or materials furnished by Contractor.

7.2 Manufacturer Warranties

Contractor shall provide Homeowner with all manufacturer warranties for materials and equipment installed. Contractor shall ensure installations comply with manufacturer specifications to preserve warranty coverage.

7.3 Warranty Exclusions

• ›Normal wear and tear
• ›Damage caused by Homeowner negligence or misuse
• ›Damage caused by third parties or acts of God
• ›Items specifically excluded in writing

8.1 Contractor Insurance Requirements

• ›Contractor shall provide certificates of insurance upon request
• ›Homeowner shall be named as additional insured on the general liability policy

9.1 Homeowner's Right to Terminate

• ›Homeowner may terminate this contract at any time by providing written notice
• ›Homeowner shall pay for all work satisfactorily completed and materials delivered as of the termination date
• ›Contractor shall provide an itemized accounting within 10 business days of termination
• ›Contractor shall not charge a cancellation penalty exceeding actual costs reasonably incurred

9.2 Contractor's Right to Terminate

• ›Homeowner fails to make a payment within days of written notice of default
• ›Conditions at the job site make the work unsafe or illegal to continue

10.1 Informal Resolution

The parties agree to attempt informal resolution of any dispute by written notice describing the issue. The other party shall respond in writing within 15 business days.

10.2 Mediation

If informal resolution fails, the parties agree to submit the dispute to non-binding mediation before a mutually agreed mediator. Mediation costs shall be shared equally.

10.3 Attorney General Complaint

10.4 Legal Action

If mediation fails, either party may pursue legal action in the Court of Common Pleas in the county where the property is located. The prevailing party shall be entitled to recover reasonable attorney's fees and costs. Pennsylvania small claims (Magisterial District Court) handles claims up to $12,000.

11.1 Protecting Against Mechanics' Liens

11.2 Residential Property Protection

12.1 Contract Requirements Under the Home Improvement Consumer Protection Act (73 P.S. 517.7(a))

Pennsylvania law requires that home improvement contracts include:

12.2 Notice to Owner

12.3 Attorney General Registration Statement

Home improvement contractors performing work of $5,000 or more per year are required to register with the Pennsylvania Office of Attorney General. Questions or complaints may be directed to: Office of Attorney General, Bureau of Consumer Protection, 15th Floor, Strawberry Square, Harrisburg, PA 17120. Phone: 1-800-441-2555.

• ›Entire Agreement: This contract, including all exhibits and change orders, constitutes the entire agreement. No prior verbal or written representations shall be binding unless incorporated herein.
• ›Severability: If any provision is found unenforceable, the remaining provisions continue in full force.
• ›Governing Law: This contract shall be governed by the laws of the State of Pennsylvania.
• ›Notice: All notices shall be in writing and delivered to the addresses in Section 1, by personal delivery, certified mail, or email with confirmed receipt.
• ›Assignment: Neither party may assign this contract without prior written consent of the other party.

• Exhibit A: Plans and Drawings
• Exhibit B: Material Specifications
• Exhibit C: Notice of Three-Day Right to Cancel
• Exhibit D: Contractor's PA Attorney General Registration Printout
• Exhibit E: Certificates of Insurance
• Additional: _________________________________

Signatures

By signing below, both parties acknowledge that they have read, understand, and agree to all terms of this contract.