Residential Construction Dispute Resolution Act

The bottom line is it would establish a process that homeowners and builders would be required to participate in if they have a dispute. But is it a good thing for consumers? That depends on who you ask.

Action News has talked to many consumers like Dan Boyer. He says he gave a contractor thousands and thousands of dollars, but the contractor's work was substandard and incomplete! Supporters of house bill 1467 claim the legislation would help homeowners like Dan.

"This bill really benefits the little guy. By that I mean the first-time home buyer and the family run small building company, those are the people out there they can't be in a lawsuit to resolve a dispute."

It covers any work performed by a contractor that costs more than 2-thousand-dollars. It requires a builder to respond to consumer complaints within 15 days.

Brad Elliott/PA Builders Association: "So the consumer is going to get a quick response and a reasonable offer from the builder. If they can't accept the reasonable offer than they can go to court like they would normally, but this way at least this way the consumer is not being dragged out or not being responded to."

But the bill also gives the contractor the right to reject the claim. Plus, it requires consumers to provide written notice of any claims at least 75 days before filing a lawsuit and the legislation lays out specifics that must be included in that written notice.

"The other side would like you to think that it protects the consumer and the homeowner, it does not."

Critics of the legislation say it limits the consumers right to take a contractor to court.

Tony Campisi/Community Associations Inst.: "There are hoops and procedures in this detailed process that a homeowner would have to go through in order to comply with the bill."

"And if you fail to comply with any of that, your case may become severely restricted once it gets to court."

Governor Rendell has until Friday to sign it into law. His office tells us today he does have very serious concerns about it because the Pennsylvania Attorney General has told him he believes the bill is unconstitutional. That's because it could limit the amount of compensation a consumer receives.

http://www.legis.state.pa.us/WU01/LI/BI/BT/2005/0/HB1467P3588.HTM