NYC HOME IMPROVEMENT UPDATED EXAM SCRIPT
QUESTIONS AND ANSWERS MARKED A+
✔✔How many business locations can a H.I. Contractor's license cover? - ✔✔One. A
seperate license is required for each place of business.
✔✔When and how does a H.I. Contractor's license get renewed? - ✔✔About three
months before license expiration, DCA will mail a renewal package. It can be renewed
by mail, online, or in person at the DCA Licensing Center.
✔✔May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the
home owner (customer)? - ✔✔No, 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.
✔✔How many years must a H.I. Contractor maintain copies of contracts, books of
account, and other records reflecting all transactions related to the home improvement
business? - ✔✔Six (6) years or the length of time of any contractual guarantee,
whichever is longer.
✔✔What percentage of a customers payments can a Contractor use for administrative,
overhead, and other projects? - ✔✔The contractor may not use funds received to pay
expenses unrelated to the home improvement, unless the home improvement is
completed and all expenses for direct labor, material, and subcontractors related to the
home improvement have been paid.
✔✔No work should be performed and no money should be paid until after the ____ day
cancellation period? - ✔✔3 days
✔✔Can a H.I. Contractor arrange a home loan or a home improvement loan for a
consumer? - ✔✔No, nor can they act as an agent for, advertise, or promote loans.
✔✔Must a contractor furnish a consumer with a written estimate? - ✔✔Yes, if the
consumer requests one.
✔✔Can a Contractor charge a fee for an estimate? - ✔✔Yes, but they must disclose the
fee to the consumer before providing the estimate and must include and itemize the fee
in the total estimated contract price.
✔✔What is the fine for false or fraudulent representation? - ✔✔A contractor or
salesperson who lies is subject to fines of up to $500 for each separate
misrepresentation.
, ✔✔What becomes of the contract entered into after misrepresentations? - ✔✔It may be
declared null and void, and contractor may be ordered to pay restitution to the
consumer.
✔✔What is the prosecution and fine penalties for operating a home improvement
business without a license or with a suspended or revoked license? - ✔✔Guilty of a
misdemeanor and may be prosecuted criminally and subject to up to six (6) months
imprisonment and/or $1,000 in fines.
✔✔What is the prosecution and fine penalties for engaging in unlicensed activity or
aiding and abetting the operation of an unlicensed person or business? - ✔✔civil
prosecution and $100 day fine.
✔✔Can the DCA padlock (close down) and confiscate (take) the tools and trucks used
in connection with unlicensed home improvement work? - ✔✔Yes!
✔✔In what form must a home improvement contract be? - ✔✔Every home improvement
contract must be in writing and signed by everyone involved.
✔✔When must the consumer receive a completed, legible copy of the H.I. contract? -
✔✔At the time of signing and before any work is done.
✔✔Does the H.I. contract have to be in englsh? - ✔✔Yes, unless another language was
used in any oral (spoken) sales presentation, in which case the contract needs to be in
that language and in English.
✔✔If a consumer wants more work done beyond what's in the original contract, what
should a contractor do? - ✔✔Provide a written amendment to the contract, which both
parties must sign.
✔✔What information should be at the heading of a H.I. contract? - ✔✔contractor's
name, office address, telephone number, and DCA license number and the
salesperson's name and DCA license number.
✔✔What dates should be on the H.I. contract? - ✔✔the contract date, approximate date
when work will begin and date to be substantially completed.
✔✔What costs must be included in the H.I. contract? - ✔✔labor and materials
✔✔What 3 notices must the H.I include? - ✔✔If the owner does not pay the contractor
they may have a claim against the owner, that the contractor is legally required to
deposit all payments received prior to completion or the contractor must post a bond or
contract of indemnity, and the cancellation notice wording.
QUESTIONS AND ANSWERS MARKED A+
✔✔How many business locations can a H.I. Contractor's license cover? - ✔✔One. A
seperate license is required for each place of business.
✔✔When and how does a H.I. Contractor's license get renewed? - ✔✔About three
months before license expiration, DCA will mail a renewal package. It can be renewed
by mail, online, or in person at the DCA Licensing Center.
✔✔May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the
home owner (customer)? - ✔✔No, 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.
✔✔How many years must a H.I. Contractor maintain copies of contracts, books of
account, and other records reflecting all transactions related to the home improvement
business? - ✔✔Six (6) years or the length of time of any contractual guarantee,
whichever is longer.
✔✔What percentage of a customers payments can a Contractor use for administrative,
overhead, and other projects? - ✔✔The contractor may not use funds received to pay
expenses unrelated to the home improvement, unless the home improvement is
completed and all expenses for direct labor, material, and subcontractors related to the
home improvement have been paid.
✔✔No work should be performed and no money should be paid until after the ____ day
cancellation period? - ✔✔3 days
✔✔Can a H.I. Contractor arrange a home loan or a home improvement loan for a
consumer? - ✔✔No, nor can they act as an agent for, advertise, or promote loans.
✔✔Must a contractor furnish a consumer with a written estimate? - ✔✔Yes, if the
consumer requests one.
✔✔Can a Contractor charge a fee for an estimate? - ✔✔Yes, but they must disclose the
fee to the consumer before providing the estimate and must include and itemize the fee
in the total estimated contract price.
✔✔What is the fine for false or fraudulent representation? - ✔✔A contractor or
salesperson who lies is subject to fines of up to $500 for each separate
misrepresentation.
, ✔✔What becomes of the contract entered into after misrepresentations? - ✔✔It may be
declared null and void, and contractor may be ordered to pay restitution to the
consumer.
✔✔What is the prosecution and fine penalties for operating a home improvement
business without a license or with a suspended or revoked license? - ✔✔Guilty of a
misdemeanor and may be prosecuted criminally and subject to up to six (6) months
imprisonment and/or $1,000 in fines.
✔✔What is the prosecution and fine penalties for engaging in unlicensed activity or
aiding and abetting the operation of an unlicensed person or business? - ✔✔civil
prosecution and $100 day fine.
✔✔Can the DCA padlock (close down) and confiscate (take) the tools and trucks used
in connection with unlicensed home improvement work? - ✔✔Yes!
✔✔In what form must a home improvement contract be? - ✔✔Every home improvement
contract must be in writing and signed by everyone involved.
✔✔When must the consumer receive a completed, legible copy of the H.I. contract? -
✔✔At the time of signing and before any work is done.
✔✔Does the H.I. contract have to be in englsh? - ✔✔Yes, unless another language was
used in any oral (spoken) sales presentation, in which case the contract needs to be in
that language and in English.
✔✔If a consumer wants more work done beyond what's in the original contract, what
should a contractor do? - ✔✔Provide a written amendment to the contract, which both
parties must sign.
✔✔What information should be at the heading of a H.I. contract? - ✔✔contractor's
name, office address, telephone number, and DCA license number and the
salesperson's name and DCA license number.
✔✔What dates should be on the H.I. contract? - ✔✔the contract date, approximate date
when work will begin and date to be substantially completed.
✔✔What costs must be included in the H.I. contract? - ✔✔labor and materials
✔✔What 3 notices must the H.I include? - ✔✔If the owner does not pay the contractor
they may have a claim against the owner, that the contractor is legally required to
deposit all payments received prior to completion or the contractor must post a bond or
contract of indemnity, and the cancellation notice wording.
