BAMP backs new registration requirement for remodeling contractors

In only a few days —July 1, 2009—all contractors who perform at least $5,000 worth of home improvements annually must be registered with the Pennsylvania’s Attorney General’s Office of Consumer Protection. The registration must be renewed every two years, at a cost of $50. Unregistered home improvement contractors face legal action, including fines of $1,000 or more. Contractors must include their registration number in their advertisements, contracts, estimates and proposals.

The registration requirement comes about due to the Home Improvement Consumer Protection Act, passed by the Pennsylvania Legislature in 2008. And by visiting the Attorney General’s web site or calling a toll-free hotline (1-888-520-6680), consumers will be able to verify that a contractor is registered.

Although he’s head of a company that does residential remodeling as well as new-home building, the new requirement doesn’t trouble David Bachman one bit. Fact is, Bachman, president of Bachman Builders, as well as president of the Builders Association of Metropolitan Pittsburgh (BAMP), is very much in favor of the newly required registration. “I think what it essentially will do is make it more difficult for an underinsured or unqualified home improvement contractor to do business in Pennsylvania,” he said. “It’s going to give an extra measure of safety to the consumer.”

Bachman’s company, in fact, registered with the Attorney General’s office this past March, when contractors were first able to do so. He chose to register online.

“We never looked at this law as a negative,” explained Bachman, speaking for his company as well as for BAMP. In fact, BAMP, with 700 members that include builders and remodelers in Allegheny, Beaver, Butler and Westmoreland counties, worked with the legislators in fashioning important provisions of the new law.

One of the major concerns, explained Bachman, was just how much money a remodeling contractor can justifiably require as a deposit. “One of the biggest risks,” he said, “is that an unscrupulous remodeler will take a large deposit and never complete the job.” On the other hand, legitimate remodeling contractors often require deposits because special order items demand cash outlays. The new law addresses this difficulty, stating that if the contract is more than $1,000, the contractor cannot accept a deposit greater than one-third of the contract price, or one-third of the contract price plus the cost of special order materials. This provision, said Bachman, “strikes a balance,” especially for small, legitimate BAMP members with limited resources.

BAMP has always responded to queries from the public regarding building, remodeling and renovation work, referencing members based on the work needed, geographic area and any other stipulations. If anything, the new law may bring even more inquiries from homeowners who want the reassurance of knowing their remodeling contractor is a member of BAMP, and also duly registered as a remodeler.

“The first thing any consumer should look for when talking about remodeling or renovation with a contractor, is their registration number,” said Bachman. “If they are not registered, that is a huge red flag. The second thing they should do is check to see if they are a member of a professional builders/remodelers association like BAMP.”

Visit the BAMP web site at www.pghhomebuilders.com for consumer information and a complete list of member remodelers.