To hire a contractor in Philadelphia, check four things before you sign: a valid Pennsylvania Home Improvement Contractor (PA HIC) registration number, a City trade license for any plumbing or electrical work, proof of insurance, and a written contract that meets Pennsylvania’s Home Improvement Consumer Protection Act. You can look up registrations in the Attorney General’s database or by calling 1-888-520-6680, and look up City licenses and permits with L&I’s online tools (City of Philadelphia).
Which license or registration applies
Pennsylvania has no general contractor license. Instead:
- PA HIC registration. Anyone who owns or runs a home improvement business, or does home improvements in Pennsylvania, must register with the Attorney General, unless they do less than $5,000 of work a year (PA Office of Attorney General). Registrations last two years, and the number has to appear in ads, contracts, estimates and proposals (PA HIC registration portal).
- Philadelphia trade licenses. Plumbers, electricians, fire suppression contractors and complete demolition contractors need a Philadelphia trade license, even for work on one- and two-family homes (City of Philadelphia).
- Philadelphia contractor license. Contractors doing construction, demolition and repair work need a City contractor license unless they work only on existing one- or two-family homes. Those who work only on existing one- or two-family homes register as Home Improvement Contractors with the state instead.
For permitted work on an existing one- or two-family home that doesn’t need an electrical or plumbing permit, the City accepts a registered PA HIC with a Philadelphia Commercial Activity License, or an owner who lives in the house (City of Philadelphia).
How to check a contractor
- Ask for the PA HIC number and look it up in the Attorney General’s database or call 1-888-520-6680.
- For plumbing and electrical work, look up the trade license with L&I’s contractor lookup tool, which lists actively licensed contractors and any licensing violations (City of Philadelphia).
- Ask for a certificate of insurance and call the insurer to confirm it’s current. HICPA requires at least $50,000 of personal injury coverage and $50,000 of property damage coverage (LegalClarity).
- Ask which permits the job needs and who will pull them. Once work starts, the City advises checking that permits are posted on the property (City of Philadelphia).
- Get two or three written estimates for the same scope so you’re comparing like with like.
What the contract must include
Under HICPA, a home improvement contract over $500 must be written, legible and signed by both you and the contractor (PA Office of Attorney General). According to LegalClarity‘s summary of the law, it must include:
- the contractor’s name, street address, phone number and PA HIC registration number;
- the date, the scope of work, and the materials and specifications;
- the total price, or a time-and-materials arrangement with a written estimate;
- approximate start and completion dates;
- the deposit and any special-order materials as separate items;
- names, addresses and phone numbers of known subcontractors;
- a statement that the contractor carries liability insurance;
- a notice of your right to cancel.
Contracts must also list the Bureau of Consumer Protection’s toll-free number, 1-888-520-6680.
Your right to cancel and deposit rules
- Three business days to cancel. You can cancel a home improvement contract within three business days of signing, for any reason, by written notice to the contractor’s address in the contract (LegalClarity).
- No payment before signing. A contractor can’t demand or accept payment before the written contract is signed.
- Deposit cap. HICPA limits the deposit to one-third of the contract price, plus the cost of special-order materials named in the contract (LegalClarity).
Red flags
- No PA HIC number on the estimate, ad or truck.
- Pressure to sign today, or a large cash deposit before anything is in writing.
- “We don’t need a permit for that” on structural, plumbing or electrical work.
- Changes in materials or scope without a signed change order. HICPA lists this, along with abandoning a job after taking payment, as a prohibited act (LegalClarity).
- A quote far below the others with no explanation of what’s left out.
Handyman, contractor or trade?
A handyman fits small repairs and punch lists. A contractor fits permitted and multi-trade projects such as kitchens, bathrooms and renovations. A licensed plumber or electrician is required for that work in Philadelphia. Our handyman price guide shows typical costs for small jobs, and our home renovation guide covers planning a larger project.
Talk to us about your project
Handyman Services of Philadelphia has served Philadelphia homeowners since 2010. Ask us anything on this checklist before you hire: what permits your job needs, who does the plumbing and electrical, and what the written estimate covers. See our handyman service, call (267) 669-8388, or request a free estimate.
FAQ
How do I look up a contractor in Pennsylvania?
Search the Attorney General’s Home Improvement Contractor database or call 1-888-520-6680. For Philadelphia trade licenses, use L&I’s contractor lookup tool.
Does a handyman need to be registered in Pennsylvania?
Yes, if they do $5,000 or more of home improvement work a year. Below that, registration isn’t required.
How much deposit can a contractor ask for in Pennsylvania?
HICPA caps the deposit at one-third of the contract price, plus special-order materials listed in the contract. No payment can be taken before the contract is signed.
Can I cancel a home improvement contract?
Yes, within three business days of signing, by written notice.
