NYC HOME IMPROVEMENT
CONTRACTOR ACTUAL EXAM 2026/2027
| DCWP Update | Comprehensive Practice
Test | Verified Q&A | Pass Guaranteed - A+
Graded
SECTION 1: LICENSING REQUIREMENTS & BUSINESS
STRUCTURE (Questions 1-15)
Q1: A plumbing contractor who performs only plumbing work within the scope of their trade
license is soliciting a job to replace all plumbing fixtures in a residential bathroom. Is a
separate Home Improvement Contractor license required?
A. Yes, all work on residential property requires a H.I. license
B. No, plumbers and electricians working within their licensed trade are exempt [CORRECT]
C. Yes, unless the job value is under $200
D. No, but only if they subcontract no other trades
Rationale: Under NYC Administrative Code §20-387, plumbers and electricians who hold valid
trade licenses from the Department of Buildings and perform work solely within their licensed
trade scope are exempt from Home Improvement Contractor licensing requirements.
However, if they expand beyond their trade scope (e.g., a plumber doing carpentry), they must
obtain a H.I. license. The $200 threshold applies to handyman work, not licensed trade
exemptions.
Q2: A licensed Home Improvement Contractor changes the location of their primary place of
business. What is the deadline for notifying the Department of Consumer and Worker
Protection of this change?
A. 48 hours
B. 30 days
,C. 10 days [CORRECT]
D. Immediately upon discovery
Rationale: NYC Administrative Code §20-393(7) and 6 RCNY §2-220 require contractors to
report changes of business address, ownership, management, or trade name within 10 days.
The 48-hour notification requirement applies specifically to salespersons reporting new
employment or termination, not to business address changes. Failure to report within 10 days
constitutes a violation.
Q3: Which of the following legal entities may NOT be licensed as a Home Improvement
Contractor in New York City?
A. Individual sole proprietor
B. Partnership
C. Corporation
D. Unincorporated association without a business certificate [CORRECT]
Rationale: NYC Administrative Code §20-386 requires all applicants to demonstrate legal
business status. Sole proprietors must file Business/Assumed Name Certificates;
partnerships must file Partnership Certificates; corporations/LLCs must be registered with
NYS Division of Corporations. An unincorporated association without proper business
documentation cannot meet the licensing requirements.
Q4: A Home Improvement Contractor employs a salesperson who negotiates contracts with
homeowners. The salesperson leaves the company to work for a competing contractor.
Within how many hours must the salesperson notify DCWP of this employment change?
A. 24 hours
B. 48 hours [CORRECT]
C. 10 days
D. 30 days
Rationale: Per 6 RCNY §2-220(b), salespersons must report new employment or termination
to DCWP within 48 hours. This rapid reporting requirement ensures the Department maintains
current records of which salespersons represent which contractors, protecting consumers
,from unlicensed solicitation. The 10-day requirement applies to contractors reporting
changes in ownership or management.
Q5: A contractor operates a home improvement business from two separate locations in
different boroughs. How many Home Improvement Contractor licenses must they hold?
A. One license covers all locations within NYC
B. One license per borough
C. One license per business address [CORRECT]
D. One license plus a separate registration for each additional location
Rationale: NYC Administrative Code §20-386 requires a separate license for each place of
business. A "place of business" is defined as each separate address where the contractor
conducts business. The license must specify the address, and the combined license and
complaint sign must be posted at each licensed location or shown upon request.
Q6: A Home Improvement Salesperson's license expires on February 28, 2027. What is the
maximum grace period during which they may submit a renewal application without having to
reapply as a new applicant?
A. 30 days
B. 59 days [CORRECT]
C. 90 days
D. One year
Rationale: DCWP regulations provide a 59-day grace period after license expiration for
renewal applications . If the renewal is not submitted within this window, the licensee must
submit an entirely new application. However, operating during the grace period without a valid
license is prohibited and may result in penalties for unlicensed activity.
Q7: Which of the following activities is NOT considered "home improvement" work requiring
a DCWP license?
A. Installing a new roof on a single-family residence
B. Building a new driveway for an existing home
, C. Constructing a new single-family home on vacant land [CORRECT]
D. Remodeling a kitchen in a condominium unit
Rationale: NYC Administrative Code §20-385 excludes "new home construction" from the
definition of home improvement. Home improvement applies to repair, remodeling, alteration,
or improvement of existing residences or land adjacent thereto. New construction on vacant
land falls outside this definition, though it requires DOB permits and other regulatory
compliance.
Q8: A licensed contractor wants to display their license at their place of business. Where
must the DCWP combined license and complaint sign be posted?
A. In the contractor's vehicle
B. In a conspicuous place where all customers can see it, or shown upon request [CORRECT]
C. Only at the specific job sites where work is performed
D. In the contractor's home office if they work from home
Rationale: 6 RCNY §1-03(a) requires the combined license and complaint sign to be posted
conspicuously at the licensed place of business where all customers can see it, or presented
to consumers upon request. This ensures consumers can verify licensing status and know
how to file complaints. Merely carrying it in a vehicle does not satisfy the conspicuous
display requirement.
Q9: A corporation applies for a Home Improvement Contractor license. Which individuals
must be fingerprinted as part of the application process?
A. All employees of the corporation
B. Only the president of the corporation
C. All officers, principals, directors, and shareholders owning 10% or more of company stock
[CORRECT]
D. Only the individual who will take the licensing exam
Rationale: Per DCWP requirements, all sole proprietors, general partners, corporate officers,
principals, directors, members, and shareholders owning 10% or more of company stock
must submit to fingerprinting through IdentoGO . This background check requirement ensures
CONTRACTOR ACTUAL EXAM 2026/2027
| DCWP Update | Comprehensive Practice
Test | Verified Q&A | Pass Guaranteed - A+
Graded
SECTION 1: LICENSING REQUIREMENTS & BUSINESS
STRUCTURE (Questions 1-15)
Q1: A plumbing contractor who performs only plumbing work within the scope of their trade
license is soliciting a job to replace all plumbing fixtures in a residential bathroom. Is a
separate Home Improvement Contractor license required?
A. Yes, all work on residential property requires a H.I. license
B. No, plumbers and electricians working within their licensed trade are exempt [CORRECT]
C. Yes, unless the job value is under $200
D. No, but only if they subcontract no other trades
Rationale: Under NYC Administrative Code §20-387, plumbers and electricians who hold valid
trade licenses from the Department of Buildings and perform work solely within their licensed
trade scope are exempt from Home Improvement Contractor licensing requirements.
However, if they expand beyond their trade scope (e.g., a plumber doing carpentry), they must
obtain a H.I. license. The $200 threshold applies to handyman work, not licensed trade
exemptions.
Q2: A licensed Home Improvement Contractor changes the location of their primary place of
business. What is the deadline for notifying the Department of Consumer and Worker
Protection of this change?
A. 48 hours
B. 30 days
,C. 10 days [CORRECT]
D. Immediately upon discovery
Rationale: NYC Administrative Code §20-393(7) and 6 RCNY §2-220 require contractors to
report changes of business address, ownership, management, or trade name within 10 days.
The 48-hour notification requirement applies specifically to salespersons reporting new
employment or termination, not to business address changes. Failure to report within 10 days
constitutes a violation.
Q3: Which of the following legal entities may NOT be licensed as a Home Improvement
Contractor in New York City?
A. Individual sole proprietor
B. Partnership
C. Corporation
D. Unincorporated association without a business certificate [CORRECT]
Rationale: NYC Administrative Code §20-386 requires all applicants to demonstrate legal
business status. Sole proprietors must file Business/Assumed Name Certificates;
partnerships must file Partnership Certificates; corporations/LLCs must be registered with
NYS Division of Corporations. An unincorporated association without proper business
documentation cannot meet the licensing requirements.
Q4: A Home Improvement Contractor employs a salesperson who negotiates contracts with
homeowners. The salesperson leaves the company to work for a competing contractor.
Within how many hours must the salesperson notify DCWP of this employment change?
A. 24 hours
B. 48 hours [CORRECT]
C. 10 days
D. 30 days
Rationale: Per 6 RCNY §2-220(b), salespersons must report new employment or termination
to DCWP within 48 hours. This rapid reporting requirement ensures the Department maintains
current records of which salespersons represent which contractors, protecting consumers
,from unlicensed solicitation. The 10-day requirement applies to contractors reporting
changes in ownership or management.
Q5: A contractor operates a home improvement business from two separate locations in
different boroughs. How many Home Improvement Contractor licenses must they hold?
A. One license covers all locations within NYC
B. One license per borough
C. One license per business address [CORRECT]
D. One license plus a separate registration for each additional location
Rationale: NYC Administrative Code §20-386 requires a separate license for each place of
business. A "place of business" is defined as each separate address where the contractor
conducts business. The license must specify the address, and the combined license and
complaint sign must be posted at each licensed location or shown upon request.
Q6: A Home Improvement Salesperson's license expires on February 28, 2027. What is the
maximum grace period during which they may submit a renewal application without having to
reapply as a new applicant?
A. 30 days
B. 59 days [CORRECT]
C. 90 days
D. One year
Rationale: DCWP regulations provide a 59-day grace period after license expiration for
renewal applications . If the renewal is not submitted within this window, the licensee must
submit an entirely new application. However, operating during the grace period without a valid
license is prohibited and may result in penalties for unlicensed activity.
Q7: Which of the following activities is NOT considered "home improvement" work requiring
a DCWP license?
A. Installing a new roof on a single-family residence
B. Building a new driveway for an existing home
, C. Constructing a new single-family home on vacant land [CORRECT]
D. Remodeling a kitchen in a condominium unit
Rationale: NYC Administrative Code §20-385 excludes "new home construction" from the
definition of home improvement. Home improvement applies to repair, remodeling, alteration,
or improvement of existing residences or land adjacent thereto. New construction on vacant
land falls outside this definition, though it requires DOB permits and other regulatory
compliance.
Q8: A licensed contractor wants to display their license at their place of business. Where
must the DCWP combined license and complaint sign be posted?
A. In the contractor's vehicle
B. In a conspicuous place where all customers can see it, or shown upon request [CORRECT]
C. Only at the specific job sites where work is performed
D. In the contractor's home office if they work from home
Rationale: 6 RCNY §1-03(a) requires the combined license and complaint sign to be posted
conspicuously at the licensed place of business where all customers can see it, or presented
to consumers upon request. This ensures consumers can verify licensing status and know
how to file complaints. Merely carrying it in a vehicle does not satisfy the conspicuous
display requirement.
Q9: A corporation applies for a Home Improvement Contractor license. Which individuals
must be fingerprinted as part of the application process?
A. All employees of the corporation
B. Only the president of the corporation
C. All officers, principals, directors, and shareholders owning 10% or more of company stock
[CORRECT]
D. Only the individual who will take the licensing exam
Rationale: Per DCWP requirements, all sole proprietors, general partners, corporate officers,
principals, directors, members, and shareholders owning 10% or more of company stock
must submit to fingerprinting through IdentoGO . This background check requirement ensures
