NYC HOME IMPROVEMENT
CONTRACTOR EXAM STUDY GUIDE
QUESTIONS AND ANSWERS | 2026
UPDATE | 100% CORRECT.
Home Improvement Trust Fund - ANS A fund that contractors can contribute to or secure a
bond with, required every two years.
Plain English Contracts - ANS Contracts must be in plain English unless another language was
used in any oral sales presentation, in which case the contract needs to be in that language as
well as English.
DCA - ANS Department of Consumer Affairs.
Salespersons Notification Requirement - ANS Salespersons must submit written confirmation
of their employment to DCA within 48 hours of appointment.
DOB - ANS Department of Buildings.
Sidewalk Work Permit - ANS A permit required from DOT to perform sidewalk work.
DOT - ANS Department of Transportation.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 11
, License Application Process - ANS You must submit an application to DCA for a new or
renewed license; a separate home-improvement contractor license is required for each place of
business.
Sales Tax Handling - ANS Contractors must collect sales tax for repairs from the consumer and
pay it.
Contract Amendment for Additional Work - ANS The contractor should provide a written
amendment to the contract, which must be signed by both the consumer and the contractor.
Unlicensed Business Closure - ANS The DCA will padlock, close down, and confiscate tools
and trucks used in connection with unlicensed home-improvement work.
Home Improvement Contract Requirements - ANS Every home improvement contract must
be in writing, signed by everyone involved, and a complete legible copy must be given to the
consumer at the time of signing.
Licensed Electrician Requirement - ANS A licensed electrician must be used to install anything
related to light, heat, and power, regardless of voltage.
Written Estimate Requirement - ANS Contractors must furnish a written estimate if requested
by the consumer, which may include a fee disclosed beforehand.
Consumer Right to Cancel - ANS Contractors or salespersons must inform the consumer of
their right to cancel a home improvement contract within three business days from the contract
date.
Notice of Cancellation Requirement - ANS A separate notice of cancellation must be provided
to the consumer at the time they sign the contract.
Subcontractor Licensing - ANS A subcontractor must have a DCA license to perform home
improvement work in New York City.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 11
CONTRACTOR EXAM STUDY GUIDE
QUESTIONS AND ANSWERS | 2026
UPDATE | 100% CORRECT.
Home Improvement Trust Fund - ANS A fund that contractors can contribute to or secure a
bond with, required every two years.
Plain English Contracts - ANS Contracts must be in plain English unless another language was
used in any oral sales presentation, in which case the contract needs to be in that language as
well as English.
DCA - ANS Department of Consumer Affairs.
Salespersons Notification Requirement - ANS Salespersons must submit written confirmation
of their employment to DCA within 48 hours of appointment.
DOB - ANS Department of Buildings.
Sidewalk Work Permit - ANS A permit required from DOT to perform sidewalk work.
DOT - ANS Department of Transportation.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 11
, License Application Process - ANS You must submit an application to DCA for a new or
renewed license; a separate home-improvement contractor license is required for each place of
business.
Sales Tax Handling - ANS Contractors must collect sales tax for repairs from the consumer and
pay it.
Contract Amendment for Additional Work - ANS The contractor should provide a written
amendment to the contract, which must be signed by both the consumer and the contractor.
Unlicensed Business Closure - ANS The DCA will padlock, close down, and confiscate tools
and trucks used in connection with unlicensed home-improvement work.
Home Improvement Contract Requirements - ANS Every home improvement contract must
be in writing, signed by everyone involved, and a complete legible copy must be given to the
consumer at the time of signing.
Licensed Electrician Requirement - ANS A licensed electrician must be used to install anything
related to light, heat, and power, regardless of voltage.
Written Estimate Requirement - ANS Contractors must furnish a written estimate if requested
by the consumer, which may include a fee disclosed beforehand.
Consumer Right to Cancel - ANS Contractors or salespersons must inform the consumer of
their right to cancel a home improvement contract within three business days from the contract
date.
Notice of Cancellation Requirement - ANS A separate notice of cancellation must be provided
to the consumer at the time they sign the contract.
Subcontractor Licensing - ANS A subcontractor must have a DCA license to perform home
improvement work in New York City.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 11
