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NYC HOME IMPROVEMENT CONTRACTOR EXAM
(LATEST UPDATE 2025/ 2026) STUDY GUIDE
QUESTIONS & ANSWERS | GRADE A | 100%
CORRECT (VERIFIED ANSWERS)
Home Improvement Trust Fund .....ANSWER.....A fund that
contractors can contribute to or secure a bond with, required
every two years.
Plain English Contracts .....ANSWER.....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 .....ANSWER.....Department of Consumer Affairs.
Salespersons Notification Requirement
.....ANSWER.....Salespersons must submit written confirmation of
their employment to DCA within 48 hours of appointment.
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DOB .....ANSWER.....Department of Buildings.
Sidewalk Work Permit .....ANSWER.....A permit required from
DOT to perform sidewalk work.
DOT .....ANSWER.....Department of Transportation.
License Application Process .....ANSWER.....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 .....ANSWER.....Contractors must collect sales
tax for repairs from the consumer and pay it.
Contract Amendment for Additional Work .....ANSWER.....The
contractor should provide a written amendment to the contract,
which must be signed by both the consumer and the contractor.
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Unlicensed Business Closure .....ANSWER.....The DCA will padlock,
close down, and confiscate tools and trucks used in connection
with unlicensed home-improvement work.
Home Improvement Contract Requirements .....ANSWER.....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 .....ANSWER.....A licensed
electrician must be used to install anything related to light, heat,
and power, regardless of voltage.
Written Estimate Requirement .....ANSWER.....Contractors must
furnish a written estimate if requested by the consumer, which
may include a fee disclosed beforehand.
Consumer Right to Cancel .....ANSWER.....Contractors or
salespersons must inform the consumer of their right to cancel a
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home improvement contract within three business days from the
contract date.
Notice of Cancellation Requirement .....ANSWER.....A separate
notice of cancellation must be provided to the consumer at the
time they sign the contract.
Subcontractor Licensing .....ANSWER.....A subcontractor must have
a DCA license to perform home improvement work in New York
City.
Notice of Cancellation Form .....ANSWER.....The contractor or
salesperson must attach two copies of a completed form titled
'Notice of Cancellation' to the signed contract, with text in both
English and at least 10-point font.
Employee Obligations .....ANSWER.....You must cover employees
with workers' compensation and disability insurance.
NYC HOME IMPROVEMENT CONTRACTOR EXAM
(LATEST UPDATE 2025/ 2026) STUDY GUIDE
QUESTIONS & ANSWERS | GRADE A | 100%
CORRECT (VERIFIED ANSWERS)
Home Improvement Trust Fund .....ANSWER.....A fund that
contractors can contribute to or secure a bond with, required
every two years.
Plain English Contracts .....ANSWER.....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 .....ANSWER.....Department of Consumer Affairs.
Salespersons Notification Requirement
.....ANSWER.....Salespersons must submit written confirmation of
their employment to DCA within 48 hours of appointment.
,Page 2 of 43
DOB .....ANSWER.....Department of Buildings.
Sidewalk Work Permit .....ANSWER.....A permit required from
DOT to perform sidewalk work.
DOT .....ANSWER.....Department of Transportation.
License Application Process .....ANSWER.....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 .....ANSWER.....Contractors must collect sales
tax for repairs from the consumer and pay it.
Contract Amendment for Additional Work .....ANSWER.....The
contractor should provide a written amendment to the contract,
which must be signed by both the consumer and the contractor.
,Page 3 of 43
Unlicensed Business Closure .....ANSWER.....The DCA will padlock,
close down, and confiscate tools and trucks used in connection
with unlicensed home-improvement work.
Home Improvement Contract Requirements .....ANSWER.....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 .....ANSWER.....A licensed
electrician must be used to install anything related to light, heat,
and power, regardless of voltage.
Written Estimate Requirement .....ANSWER.....Contractors must
furnish a written estimate if requested by the consumer, which
may include a fee disclosed beforehand.
Consumer Right to Cancel .....ANSWER.....Contractors or
salespersons must inform the consumer of their right to cancel a
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home improvement contract within three business days from the
contract date.
Notice of Cancellation Requirement .....ANSWER.....A separate
notice of cancellation must be provided to the consumer at the
time they sign the contract.
Subcontractor Licensing .....ANSWER.....A subcontractor must have
a DCA license to perform home improvement work in New York
City.
Notice of Cancellation Form .....ANSWER.....The contractor or
salesperson must attach two copies of a completed form titled
'Notice of Cancellation' to the signed contract, with text in both
English and at least 10-point font.
Employee Obligations .....ANSWER.....You must cover employees
with workers' compensation and disability insurance.
