Philadelphia Home Improvement Contractor EXAM
QUESTIONS AND CORRECT VERIFIED SOLUTIONS LATEST
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Philadelphia Home Improvement Contractor License
Exam Coverage Overview (10 Key Areas)
1. HIC Registration vs. City License Requirements – State HIC registration ($100 biennial)
vs. Philadelphia Contractor License (no exam but separate city requirements) .
2. State HIC Registration Rules – PA Home Improvement Contractor (HIC) registration
through PA Attorney General; $51 biennial fee; required for work over $5,000; no exam .
3. Philadelphia-Specific Requirements – City Contractor License required for commercial
work; HIC registration sufficient for one/two-family dwellings (excluding
electrical/plumbing/fire) .
4. Insurance Requirements – General liability $500,000 per occurrence; auto $300,000;
workers' comp $100,000/$100,000/$500,000 .
5. OSHA Training Requirements – OSHA 10 for all workers; OSHA 30 for supervisors (within
5 years); subcontractors included .
6. Application Process – eCLIPSE online system; Commercial Activity License required; tax
compliance (BIRT); no exam .
7. Contract & Consumer Protection – HIC number on all ads/contracts; written contracts;
HICPA compliance; 3-day cooling-off period .
8. Pennsylvania Mechanics' Lien Law – Notice requirements; lien rights; 1963 Act
provisions .
9. Special Trades & Exemptions – Electrical, plumbing, fire suppression require city trade
licenses; excavation requires separate license .
10. Renewal & Compliance – Annual renewal; tax compliance; active insurance; OSHA
training current; penalties for non-compliance .
1. What is the primary requirement for a contractor performing home improvement work on
a one- or two-family dwelling in Philadelphia?
A) A Philadelphia Contractor License
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B) Registration with the PA Office of the Attorney General
C) A Commercial Activity License only
D) A Philadelphia trade license
Correct Answer: B
Rationale: Contractors working on one- or two-family dwellings in Philadelphia do not need a
city contractor license if they are not performing electrical, plumbing, or fire suppression work.
Instead, they must register as a Home Improvement Contractor (HIC) with the PA Office of the
Attorney General .
2. Which city agency is responsible for contractor licensing and permitting in Philadelphia?
A) Philadelphia Building Department
B) Department of Licenses and Inspections (L&I)
C) Pennsylvania Attorney General's Office
D) Philadelphia Department of Commerce
Correct Answer: B
Rationale: The Philadelphia Department of Licenses and Inspections (L&I) oversees contractor
licensing, permitting, and inspections for construction work in the city .
3. Which state agency administers the Home Improvement Contractor (HIC) registration
program?
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A) Pennsylvania Department of Labor and Industry
B) Pennsylvania Department of Revenue
C) Pennsylvania Office of the Attorney General
D) Pennsylvania Department of Environmental Protection
Correct Answer: C
Rationale: The Pennsylvania Home Improvement Contractor (HIC) registration program is
administered by the PA Office of the Attorney General under the Home Improvement Consumer
Protection Act (HICPA) .
4. Which of the following work activities requires a Philadelphia trade license even on a one-
or two-family dwelling?
A) Installing windows
B) Reroofing a house
C) Electrical work
D) Exterior siding installation
Correct Answer: C
Rationale: Contractors still need a trade license to do electrical work, plumbing work, or fire
suppression work, even on one- or two-family residences. Window installation, roofing, and
siding work do not require a specialized trade license .
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5. What is the minimum general liability insurance coverage required for a Philadelphia
contractor?
A) $100,000 per occurrence
B) $300,000 per occurrence
C) $500,000 per occurrence
D) $1,000,000 per occurrence
Correct Answer: C
Rationale: Philadelphia requires contractors to provide proof of general liability insurance with
a minimum coverage of $500,000 per occurrence .
6. What is the threshold for Pennsylvania Home Improvement Contractor registration?
A) Any paid work on residential property
B) Projects valued at $500 or more
C) Projects valued at $5,000 or more per year
D) Commercial projects only
Correct Answer: C
Rationale: Home Improvement Contractor registration is required for anyone performing
$5,000 or more of home improvement work per year under the Home Improvement Consumer
Protection Act (73 P.S. § 517.1 et seq.) .