Pennsylvania Residential Construction Contract (Home Improvement) (2026)

A contract between a homeowner and a contractor for building, remodeling or repair work — scope, schedule, price, payment milestones, change orders, insurance, warranty and the notices your state requires in the contract.

Updated September 2026≈ 9 minReviewed against 73 P.S. § 517.7

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Sample first page of the Residential Construction Contract (Home Improvement). Your answers fill in the blanks; the clauses required in Pennsylvania are added automatically.

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What this document covers

Owner, contractor and licence number
Project address and full scope of work
Start date and substantial completion date
Fixed price, cost-plus or time and materials
Down payment inside your state's legal cap
Payment milestones tied to the work
Written change-order procedure
Permits, inspections and code compliance
General liability and workers' compensation
Warranty, termination, disputes and the notices your state mandates

Pennsylvania rules that this document follows

Contractor license	Office of Attorney General — home improvement contractor registration — The home improvement contract must contain the home improvement contractor registration number of the contractor performing the work.Source: 73 P.S. § 517.7(a)(1)
License number on the contract	Required — the contract must state itSource: 73 P.S. § 517.7(a)(1)
Written contract required	Yes — A home improvement contract must be legible, in writing, signed by the owner and the contractor, and must contain the date, the contractor's name, address and telephone number, the approximate start and completion dates, a description of the work and materials changeable only by written change order, the total price or the time-and-materials basis with an estimate, the down payment and special-order materials listed separately, the subcontractors' details, proof of liability insurance of at least $50,000 personal injury and $50,000 property damage, the Attorney General's toll-free number and the notice of the right of rescission.Source: 73 P.S. § 517.7(a)
Down payment cap	None confirmed — no statutory cap was found; a deposit tied to mobilisation and special-order materials is the norm
Required notices	RIGHT OF RESCISSION; LIABILITY INSURANCESource: 73 P.S. § 517.7(b)
Right to cancel	3 business days — An owner who signs a home improvement contract may rescind it without penalty within three business days of signing, regardless of where the contract was signed.Source: 73 P.S. § 517.7(b)

Rules current as of 2026-09-14. Statutes change; verify before relying on them.

How to use this Residential Construction Contract (Home Improvement) in Pennsylvania

In Pennsylvania the contract is regulated, not just recommended: A home improvement contract must be legible, in writing, signed by the owner and the contractor, and must contain the date, the contractor's name, address and telephone number, the approximate start and completion dates, a description of the work and materials changeable only by written change order, the total price or the time-and-materials basis with an estimate, the down payment and special-order materials listed separately, the subcontractors' details, proof of liability insurance of at least $50,000 personal injury and $50,000 property damage, the Attorney General's toll-free number and the notice of the right of rescission. (73 P.S. § 517.7(a)) This template writes the scope, the dates, the price, the payment milestones and the change-order rule into one document and prints the notices your state requires around it.

Price the job in one of three ways. A fixed price puts the risk of overruns on the contractor and is what most homeowners should ask for. Cost plus a fee makes sense for open-ended renovation, but only with a not-to-exceed number and access to the books. Time and materials suits small repairs where nobody can scope the work in advance. Tie the rest to milestones a person can stand in the room and verify — never to a calendar.

Put the licence number on the contract: The home improvement contract must contain the home improvement contractor registration number of the contractor performing the work. (73 P.S. § 517.7(a)(1)) Ask for a certificate of general liability insurance and, where the contractor has employees, workers' compensation. An uninsured injury on your property is the one construction risk a homeowner cannot fix afterwards.

The contract has to carry the notices Pennsylvania prescribes — RIGHT OF RESCISSION, LIABILITY INSURANCE — and this template prints each of them. The owner's cancellation right is state law: An owner who signs a home improvement contract may rescind it without penalty within three business days of signing, regardless of where the contract was signed. (73 P.S. § 517.7(b)) Sign before any work begins, hand the owner a full copy the same day, and collect a lien waiver with every payment.

Frequently asked questions

Does Pennsylvania require a written home improvement contract?

Yes. A home improvement contract must be legible, in writing, signed by the owner and the contractor, and must contain the date, the contractor's name, address and telephone number, the approximate start and completion dates, a description of the work and materials changeable only by written change order, the total price or the time-and-materials basis with an estimate, the down payment and special-order materials listed separately, the subcontractors' details, proof of liability insurance of at least $50,000 personal injury and $50,000 property damage, the Attorney General's toll-free number and the notice of the right of rescission. (73 P.S. § 517.7(a))

How big a down payment can a contractor ask for in Pennsylvania?

No statutory down-payment cap was confirmed for Pennsylvania. Even so, a deposit larger than what mobilisation and special-order materials actually cost is a warning sign — pay for work, not for promises.

Can I cancel a signed contract in Pennsylvania?

Yes. An owner who signs a home improvement contract may rescind it without penalty within three business days of signing, regardless of where the contract was signed. (73 P.S. § 517.7(b))

What notices must the contract itself contain in Pennsylvania?

These: RIGHT OF RESCISSION (73 P.S. § 517.7(b)); LIABILITY INSURANCE (73 P.S. § 517.7(a)(11)). This template prints each of them, using the statutory wording where the statute prescribes the words.

Does the contractor's license number have to be on the contract?

Yes. The home improvement contract must contain the home improvement contractor registration number of the contractor performing the work. (73 P.S. § 517.7(a)(1)) A contract without it can expose the contractor to discipline and, in some states, make the contract hard to enforce.

Who pays if a subcontractor liens my house after I paid the contractor?

In most states the lien attaches to the house even though the owner paid, which is why this contract makes the contractor pay downstream and deliver a lien waiver with every payment. Collect the waivers before releasing each milestone, and keep the final payment until the last waiver is in hand.

Other names

home improvement contract
residential construction contract
remodeling contract
contractor agreement
general contractor contract
home remodeling agreement
renovation contract
construction agreement homeowner
home repair contract
builder contract

Other states

FormsByState provides self-help document templates and general information, not legal advice. We are not a law firm. For advice about your situation consult a licensed attorney in your state.