NYC Home Improvement Question and
Answer | A+ Verified Updated | Most
Tested
• Contractor -✓✓Anyone who owns, operates, maintains, conducts, controls, or
transacts a home improvement business, or solicits a home improvement contract.
• Home improvement contract -✓✓An agreement between a contractor and an owner or
tenant for performance of a home improvement, including all labor, services, and
materials to be furnished and performed.
• Who must have a DCWP license? -✓✓Any person who solicits, canvasses, sells,
performs, or obtains a home improvement contract as a contractor.
• Who does not require a DCWP license? -✓✓An individual employee working for the
contractor, a person performing a home improvement job less than $200, plumbers and
electricians acting within their licensed craft, architects and engineers acting exclusively
within their scope.
• Local Law 31 of 2020 -✓✓Repealed the licensing requirement for Home Improvement
Salespersons, effective August 9, 2020.
• DCWP -✓✓Department of Consumer and Worker Protection.
• DOB -✓✓Department of Buildings.
• DOT -✓✓Department of Transportation.
• Consumer Protection Law -✓✓A law that licensees must comply with, alongside all
relevant laws and rules.
• Installation examples of home improvement -✓✓Includes installation of central
heating/air conditioning, central vacuum cleaning systems, storm windows, awnings,
and communication systems.
• Home Improvement Salespersons -✓✓Individuals who solicit or negotiate contracts on
behalf of contractors, no longer licensed by DCWP as of August 9, 2020.
• Home Improvement Contractor license -✓✓A license that must be posted by
contractors.
,• Qualifying home improvement work -✓✓Work that requires a contractor's license and
passing an examination by DCWP.
• Examination purpose -✓✓To test understanding of the law related to home
improvement.
• Relevant laws and rules -✓✓Laws and rules that licensees must know and comply
with, accessible at nyc.gov/BusinessToolbox.
• General Industry and Business Knowledge -✓✓One of the topics covered in the home
improvement examination.
• Advertising and Selling Practices -✓✓Another topic covered in the home improvement
examination.
• Contracts and Cancellations -✓✓One of the subjects tested in the home improvement
examination.
• The Basics of the City's Home Improvement Business Law -✓✓The foundational
knowledge required for the home improvement examination.
• Home improvement business -✓✓A business that engages in home improvement
activities, requiring a contractor's license.
• Home improvement job under $200 -✓✓A job that does not require a DCWP license.
• Architects and engineers -✓✓Professionals who do not require a DCWP license when
acting within their scope.
• Home improvement work -✓✓Includes various activities related to improving
residential properties.
• License Posting Requirement -✓✓You must post your license in your office where all
consumers can see it or show it to consumers upon request.
• Notification of Business Changes -✓✓At least 10 days before a change to your
business trade name or address, you must notify DCWP.
• Change of Ownership Notification -✓✓You must notify DCWP in advance to get
approval for a change of ownership (management).
• License Application Process -✓✓You must submit an application to DCWP for a new
or renewed license.
,• Home Improvement Contractor License -✓✓A separate Home Improvement
Contractor license is required for each place of business.
• Applying for a New License -✓✓You can apply for a new license in person by
appointment only at the DCWP Licensing Center or NYC Small Business Support
Center, or online at nyc.gov/BusinessToolbox.
• License Renewal Notification -✓✓About three months before your license expires,
DCWP will mail you a license renewal package.
• Renewal Methods -✓✓You can renew by mail, in person at the DCWP Licensing
Center or NYC Small Business Support Center, or online at nyc.gov/BusinessToolbox.
• Prime Contractor Duties -✓✓The prime contractor must secure all necessary permits,
licenses, Certificates of Occupancy, or exemptions necessary to complete the contract
in accordance with state and local building laws.
• Record Keeping Requirement -✓✓Each home improvement contractor must maintain
copies of contracts, books of account, and other records reflecting all transactions
related to the home improvement business for six (6) years or the length of time of any
contractual guarantee, whichever is longer.
• Use of Funds -✓✓The home improvement contractor must use all funds received to
pay expenses directly related to the home improvement.
• Cancellation Period -✓✓No work should be performed and no money should be paid
until after the 3-day cancellation period.
• Contractor Prohibitions -✓✓A contractor cannot abandon or fail to perform agreed-
upon work.
• Misrepresentation in Contracts -✓✓A contractor cannot make any substantial
misrepresentation in the solicitation of a home improvement contract.
• Fraud in Execution -✓✓A contractor cannot commit fraud in the execution of a
contract, mortgage, promissory note, or other document related to the home
improvement transaction.
• False Advertising -✓✓A contractor cannot publish any advertisement that contains
false, deceptive, or misleading representations.
• Legal Violations -✓✓A contractor cannot violate the building, sanitary, fire, and health
laws.
, • Ownership Change Notification -✓✓A contractor cannot fail to notify DCWP of any
change of ownership (management), business name, or business location.
• DBA Name Requirement -✓✓A contractor cannot conduct the home improvement
business in any name other than the name of the business or Doing Business As (DBA)
name listed on the license.
• Agent Prohibition -✓✓A contractor cannot act as an agent for, or advertise, promote,
or arrange a home loan or a home improvement loan for the consumer.
• Written Estimate Requirement -✓✓Yes, if the consumer requests one, a contractor
must furnish a consumer with a written estimate.
• Estimate Fee Disclosure -✓✓You can charge a reasonable fee for the estimate, but
you must disclose the fee to the consumer before you provide the estimate and you
must include and itemize the fee in the total estimated contract price.
• Penalties for Misrepresentation -✓✓A contractor who lies is subject to civil fines of up
to $500 for each separate misrepresentation.
• Contract Nullification -✓✓A contract entered into after misrepresentations are made
may be declared null and void, and a contractor may be ordered to pay restitution to the
consumer.
• Unlicensed Home Improvement Business -✓✓Any person who owns or operates a
home improvement business without a license or after a license is suspended or
revoked may be guilty of a misdemeanor and may be prosecuted criminally and subject
to up to six (6) months imprisonment and/or $1,000 in fines.
• Civil Prosecution for Unlicensed Activity -✓✓A person may be prosecuted civilly and
faces fines of up to $100 per day for engaging in unlicensed activity or aiding and
abetting the operation of an unlicensed person or business.
• DCWP Actions -✓✓DCWP can padlock (close down) and confiscate (take) the tools
and trucks used in connection with unlicensed home improvement work.
• Home Improvement Contract Requirements -✓✓Every home improvement contract
must be in writing and signed by everyone involved.
• Consumer Copy of Contract -✓✓You must give the consumer a completed, legible
copy of the contract at the time of signing and before any work is done.
• Language of Contract -✓✓The contract must be in plain English, unless another
language was used in any oral (spoken) sales presentation.
Answer | A+ Verified Updated | Most
Tested
• Contractor -✓✓Anyone who owns, operates, maintains, conducts, controls, or
transacts a home improvement business, or solicits a home improvement contract.
• Home improvement contract -✓✓An agreement between a contractor and an owner or
tenant for performance of a home improvement, including all labor, services, and
materials to be furnished and performed.
• Who must have a DCWP license? -✓✓Any person who solicits, canvasses, sells,
performs, or obtains a home improvement contract as a contractor.
• Who does not require a DCWP license? -✓✓An individual employee working for the
contractor, a person performing a home improvement job less than $200, plumbers and
electricians acting within their licensed craft, architects and engineers acting exclusively
within their scope.
• Local Law 31 of 2020 -✓✓Repealed the licensing requirement for Home Improvement
Salespersons, effective August 9, 2020.
• DCWP -✓✓Department of Consumer and Worker Protection.
• DOB -✓✓Department of Buildings.
• DOT -✓✓Department of Transportation.
• Consumer Protection Law -✓✓A law that licensees must comply with, alongside all
relevant laws and rules.
• Installation examples of home improvement -✓✓Includes installation of central
heating/air conditioning, central vacuum cleaning systems, storm windows, awnings,
and communication systems.
• Home Improvement Salespersons -✓✓Individuals who solicit or negotiate contracts on
behalf of contractors, no longer licensed by DCWP as of August 9, 2020.
• Home Improvement Contractor license -✓✓A license that must be posted by
contractors.
,• Qualifying home improvement work -✓✓Work that requires a contractor's license and
passing an examination by DCWP.
• Examination purpose -✓✓To test understanding of the law related to home
improvement.
• Relevant laws and rules -✓✓Laws and rules that licensees must know and comply
with, accessible at nyc.gov/BusinessToolbox.
• General Industry and Business Knowledge -✓✓One of the topics covered in the home
improvement examination.
• Advertising and Selling Practices -✓✓Another topic covered in the home improvement
examination.
• Contracts and Cancellations -✓✓One of the subjects tested in the home improvement
examination.
• The Basics of the City's Home Improvement Business Law -✓✓The foundational
knowledge required for the home improvement examination.
• Home improvement business -✓✓A business that engages in home improvement
activities, requiring a contractor's license.
• Home improvement job under $200 -✓✓A job that does not require a DCWP license.
• Architects and engineers -✓✓Professionals who do not require a DCWP license when
acting within their scope.
• Home improvement work -✓✓Includes various activities related to improving
residential properties.
• License Posting Requirement -✓✓You must post your license in your office where all
consumers can see it or show it to consumers upon request.
• Notification of Business Changes -✓✓At least 10 days before a change to your
business trade name or address, you must notify DCWP.
• Change of Ownership Notification -✓✓You must notify DCWP in advance to get
approval for a change of ownership (management).
• License Application Process -✓✓You must submit an application to DCWP for a new
or renewed license.
,• Home Improvement Contractor License -✓✓A separate Home Improvement
Contractor license is required for each place of business.
• Applying for a New License -✓✓You can apply for a new license in person by
appointment only at the DCWP Licensing Center or NYC Small Business Support
Center, or online at nyc.gov/BusinessToolbox.
• License Renewal Notification -✓✓About three months before your license expires,
DCWP will mail you a license renewal package.
• Renewal Methods -✓✓You can renew by mail, in person at the DCWP Licensing
Center or NYC Small Business Support Center, or online at nyc.gov/BusinessToolbox.
• Prime Contractor Duties -✓✓The prime contractor must secure all necessary permits,
licenses, Certificates of Occupancy, or exemptions necessary to complete the contract
in accordance with state and local building laws.
• Record Keeping Requirement -✓✓Each home improvement contractor must maintain
copies of contracts, books of account, and other records reflecting all transactions
related to the home improvement business for six (6) years or the length of time of any
contractual guarantee, whichever is longer.
• Use of Funds -✓✓The home improvement contractor must use all funds received to
pay expenses directly related to the home improvement.
• Cancellation Period -✓✓No work should be performed and no money should be paid
until after the 3-day cancellation period.
• Contractor Prohibitions -✓✓A contractor cannot abandon or fail to perform agreed-
upon work.
• Misrepresentation in Contracts -✓✓A contractor cannot make any substantial
misrepresentation in the solicitation of a home improvement contract.
• Fraud in Execution -✓✓A contractor cannot commit fraud in the execution of a
contract, mortgage, promissory note, or other document related to the home
improvement transaction.
• False Advertising -✓✓A contractor cannot publish any advertisement that contains
false, deceptive, or misleading representations.
• Legal Violations -✓✓A contractor cannot violate the building, sanitary, fire, and health
laws.
, • Ownership Change Notification -✓✓A contractor cannot fail to notify DCWP of any
change of ownership (management), business name, or business location.
• DBA Name Requirement -✓✓A contractor cannot conduct the home improvement
business in any name other than the name of the business or Doing Business As (DBA)
name listed on the license.
• Agent Prohibition -✓✓A contractor cannot act as an agent for, or advertise, promote,
or arrange a home loan or a home improvement loan for the consumer.
• Written Estimate Requirement -✓✓Yes, if the consumer requests one, a contractor
must furnish a consumer with a written estimate.
• Estimate Fee Disclosure -✓✓You can charge a reasonable fee for the estimate, but
you must disclose the fee to the consumer before you provide the estimate and you
must include and itemize the fee in the total estimated contract price.
• Penalties for Misrepresentation -✓✓A contractor who lies is subject to civil fines of up
to $500 for each separate misrepresentation.
• Contract Nullification -✓✓A contract entered into after misrepresentations are made
may be declared null and void, and a contractor may be ordered to pay restitution to the
consumer.
• Unlicensed Home Improvement Business -✓✓Any person who owns or operates a
home improvement business without a license or after a license is suspended or
revoked may be guilty of a misdemeanor and may be prosecuted criminally and subject
to up to six (6) months imprisonment and/or $1,000 in fines.
• Civil Prosecution for Unlicensed Activity -✓✓A person may be prosecuted civilly and
faces fines of up to $100 per day for engaging in unlicensed activity or aiding and
abetting the operation of an unlicensed person or business.
• DCWP Actions -✓✓DCWP can padlock (close down) and confiscate (take) the tools
and trucks used in connection with unlicensed home improvement work.
• Home Improvement Contract Requirements -✓✓Every home improvement contract
must be in writing and signed by everyone involved.
• Consumer Copy of Contract -✓✓You must give the consumer a completed, legible
copy of the contract at the time of signing and before any work is done.
• Language of Contract -✓✓The contract must be in plain English, unless another
language was used in any oral (spoken) sales presentation.
