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In Pennsylvania, it is illegal for contractors to ask for a down payment of more than one-third the total cost of the project or one-third plus the cost of any specialty materials.
5 Key Elements Every Construction Contract Should Contain 1) The projects scope. 2) The cost and payment terms. 3) The projects time frame. 4) Protection against lien law. 5) Dispute resolution clauses.
There are no state-level licenses required to work as a general contractor in Pennsylvania. However, you may need to register with the Attorney General and check with your local jurisdiction for any additional registration or licensing requirements.
A contract should contain everything agreed upon by you and your licensed contractor. It should detail the work, price, when payments will be made, who gets the necessary building permits, and when the job will be finished. The contract also must identify the contractor, and give their address and license number.
To report unlicensed contractors or unpermitted work, use 311s online form or call 311. If youre outside Philadelphia, call (215) 686-8686 instead. After youve filed a report with 311, you can submit more information to addinfoli@phila.gov.

People also ask

Do You Have to Pay a Deposit? Most contractors will request a downpayment to add you to their schedule and also to ensure the project continues to move forward after the contractor has purchased materials. Reputable contractors are happy to negotiate a downpayment, including the amount and payment terms.
Generally speaking a down payment of one-third of the total contract price or one-third plus the cost of special ordering materials is appropriate.
All home improvement contractors must register, with the exception of those performing less than $5,000 of work in a calendar year and retailers with a net worth of $50 million. The law does not grandfather existing businesses.
The exact deposit amount contractors ask for upfront varies and is especially dependent on the size of the project. For relatively small jobs, like a $16,000 bathroom remodel, contractors may ask for a 50% deposit. For large jobs, like a $100,000 full-home renovation, a 10%20% deposit is more typical.
The Commonwealth of Pennsylvania currently has no licensure or certification requirements for most construction contractors (or their employees).

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