NYC Home Improvement Contractor
Exam Study Guide Questions and
Answers Graded A+
Home Improvement Trust Fund - Correct answer-A fund to which a contractor can
contribute every two years instead of securing a bond.
Plain English Contracts - Correct answer-Contracts must be in plain English unless
another language was used in any oral spoken sales presentation.
DCA - Correct answer-Department of Consumer Affairs.
Sales Persons Notification - Correct answer-Sales persons must submit written
confirmation of their employment to DCA within 48 hours of appointment.
DOB - Correct answer-Department of Buildings.
Sidewalk Work Permit - Correct answer-A permit from DOT is required to perform
sidewalk work.
DOT - Correct answer-Department of Transportation.
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,License Application - Correct 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 - Correct answer-Contractors must collect sales tax for repairs
from the consumer and pay it.
Contract Amendment - Correct answer-The contractor should provide a written
amendment to the contract if a consumer wants more work done beyond what's in
the original contract.
Unlicensed Business Consequences - Correct answer-The DCA will padlock, close
down, and confiscate tools and trucks used in connection with unlicensed home-
improvement work.
Home Improvement Contract Requirements - Correct answer-Every home
improvement contract must be in writing and signed by everyone involved, with a
complete legible copy given to the consumer at the time of signing.
Licensed Electrician Requirement - Correct answer-You must use a licensed
electrician to install anything having to do with light, heat, and power, regardless
of voltage.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Written Estimate Requirement - Correct answer-A contractor must furnish a
written estimate if the consumer requests one, including a disclosed fee if
applicable.
Consumer's Right to Cancel - Correct answer-A contractor or sales person must
inform the consumer of their right to cancel a home improvement contract within
three business days from the contract date.
Notice of Cancellation - Correct answer-A separate notice of cancellation must be
provided to the consumer at the time they sign the contract.
Subcontractor Licensing - Correct answer-A subcontractor must have a DCA
license to perform home improvement work in New York City.
Contract Attachment Requirement - Correct answer-The contractor or sales person
must attach two copies of a separate completed form titled 'Notice of Cancellation'
to the signed contract.
Employee Obligations - Correct answer-You must cover employees with workers'
compensation and disability insurance.
Employee wages reporting - Correct answer-Must report employee wages to the
Internal Revenue Service, and you must withhold taxes.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Exam Study Guide Questions and
Answers Graded A+
Home Improvement Trust Fund - Correct answer-A fund to which a contractor can
contribute every two years instead of securing a bond.
Plain English Contracts - Correct answer-Contracts must be in plain English unless
another language was used in any oral spoken sales presentation.
DCA - Correct answer-Department of Consumer Affairs.
Sales Persons Notification - Correct answer-Sales persons must submit written
confirmation of their employment to DCA within 48 hours of appointment.
DOB - Correct answer-Department of Buildings.
Sidewalk Work Permit - Correct answer-A permit from DOT is required to perform
sidewalk work.
DOT - Correct answer-Department of Transportation.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,License Application - Correct 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 - Correct answer-Contractors must collect sales tax for repairs
from the consumer and pay it.
Contract Amendment - Correct answer-The contractor should provide a written
amendment to the contract if a consumer wants more work done beyond what's in
the original contract.
Unlicensed Business Consequences - Correct answer-The DCA will padlock, close
down, and confiscate tools and trucks used in connection with unlicensed home-
improvement work.
Home Improvement Contract Requirements - Correct answer-Every home
improvement contract must be in writing and signed by everyone involved, with a
complete legible copy given to the consumer at the time of signing.
Licensed Electrician Requirement - Correct answer-You must use a licensed
electrician to install anything having to do with light, heat, and power, regardless
of voltage.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Written Estimate Requirement - Correct answer-A contractor must furnish a
written estimate if the consumer requests one, including a disclosed fee if
applicable.
Consumer's Right to Cancel - Correct answer-A contractor or sales person must
inform the consumer of their right to cancel a home improvement contract within
three business days from the contract date.
Notice of Cancellation - Correct answer-A separate notice of cancellation must be
provided to the consumer at the time they sign the contract.
Subcontractor Licensing - Correct answer-A subcontractor must have a DCA
license to perform home improvement work in New York City.
Contract Attachment Requirement - Correct answer-The contractor or sales person
must attach two copies of a separate completed form titled 'Notice of Cancellation'
to the signed contract.
Employee Obligations - Correct answer-You must cover employees with workers'
compensation and disability insurance.
Employee wages reporting - Correct answer-Must report employee wages to the
Internal Revenue Service, and you must withhold taxes.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
