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Construction Work Regulated?

Who Regulates Construction?

Requirements?

National Exams

Construction Work Regulated?

Highway construction is regulated by the state through prequalification requirements.

Residential Home Improvement Contractors are regulated at the state level.

Who Regulates Construction?

Highway prequalification information may be obtained from:

Pennsylvania Department of Transportation Prequalification Office
400 North Street, 7th Floor North
Harrisburg, PA 17120
(717) 787-7032/Fax (717) 783-7969
https://www.ecms.penndot.gov/ECMS (case sensitive)

Public works (other than highways) information is available from:
Pennsylvania Department of General Services Public Works-Headquarters Building
18th and Herr Street, Room 104
Harrisburg, PA 17125
(717) 787-6371/Fax (717) n2-3399
https://www.dgs.state.pa.us

Residential home improvement contractor registration information may be obtained from:

Pennsylvania Office of Attorney General Bureau of Consumer Protection Home Improvement Contractor Registration
15th Floor, Strawberry Square
Harrisburg, PA 17120
(717) n2-2425/Fax (717) 772-1927
https://www.attorneygeneraI.gov

Requirements?

Highway Prequalification:
Complete regulations are defined at 67 Pa . Code§ 457. Both prime contractors and subcontractors are required to submit an Organization and Experience Statement and an Affirmative Action Statement.

Experience: As a part of the Organization and Experience Statement, prime contractors and subcontractors shall furnish, under oath, a statement that shall give an accurate and complete record of work done in the past 5 years, as a contractor of record, or an approved subcontractor, giving the names of projects undertaken, the types of work, the locations, the contract price, and the principle engineer in charge for the contracting agency. Prime contractors and subcontractors shall be classified according to the type of work and amount of work for which their experience and financial capacity will qualify them to bid.

Financial :
Only prime contractors are required to submit a financial statement. An audited financial statement is required when a prime contractor 's net working capital is in excess of $50,000. A review type of financial statement is acceptable only when the prime contractor's net working capital does not exceed $50,000. If the net working capital is negative, or if the maximum capacity rating exceeds $4,000,000, a review type of financial statement is not acceptable, and an audited financial statement is required. A financial statement that is received later than 9 months after the balance sheet date may not be accepted. Financial statements received more than 6 months after the balance sheet date shall include an assurance by the accountant that there are no material changes in the financial condition of the prime contractor since the balance sheet date.

Bonding:
If an audited financial statement or reviewed financial statement has a qualified opinion, the prime contractor must provide documentation from his bonding company that the bonding company has the prime contractor's financial records and will bond the prime contractor's future work.

Period Covered by the Qualification:
Prequalification, unless withdrawn or suspended, expires 30 months from the date of the prime contractor's balance sheet date except that an 18 month expiration period will be assigned when required to provide for an even year expiration date for those prime contractors with a certificate alpha prefix of A through K and an odd year expiration date for those prime contractor's with a certificate alpha prefix of L through Z. For subcontractors, prequalification expires 2 years from the date of issuance of the certificate of prequalification except that a lesser expiration period will be assigned when required to provide for an even year expiration date for those subcontractors with a certificate alpha prefix of A through K and an odd year expiration date for those subcontractors with a certificate alpha prefix of L through Z.

Method of Setting Contract Limits: The maximum capacity rating for prime contractors shall be a flat sum as determined by the formula Q=F(C+1/2L +1/2E). A prime contractor whose maximum capacity exceeds $100,000,000 as determined by this formula will be considered to have unlimited financial capacity. The symbols used in this formula have the following meaning:

Q = Maximum capacity rating

C = Net working capital

F = Assigned ability factor (1to15)

L = Line-of-credit statements

E = Book value of equipment

Award of contract shall be restricted to the assigned maximum capacity rating less monetary value of the uncompleted contract and subcontract work. A maximum capacity rating is not determined for subcontractors.

Residential Home Improvement Contractors:
All contractors, including self-employed contractors and sole proprietorships, subcontractors and independent contractors, and corporations, partnerships and all other types of business entities must be registered, unless they fall into the 2 exemptions below:

a. A person for whom the total cash value of all of that person's home improvements is less than $5,000 during the previous taxable year.

b. A home improvement retailer having a net worth of more than $50,000,000 or an employee of that retailer that does not perform home improvements.

A home improvement contractor is defined as any person who owns and operates a home improvement business or who undertakes, offers to undertake or agrees to perform any home improvement. The term includes a subcontractor or independent contractor who has contracted with a home improvement retailer, regardless of the
retailer's net worth, to provide home improvement services to the retailer's customers.

An application must be submitted along with proof of insurance policy information shown at least $50,000 of personal injury liability coverage and $50,000 of property damage coverage. There is an application fee of $50 that is non-refundable. Registrations are valid for 2 years and must be renewed biennially

RECIPROCAL AGREEMENTS
Pennsylvania does not have reciprocal agreements with any other states.