NYC HOME IMPROVEMENT CONTRACTOR
LICENSE EXAM
Department of Consumer and Worker
Protection (DCWP) — 2026/2027 Edition
Exam Format: 35 Multiple-Choice Questions
Official Exam: 30 questions, minimum 21 correct to pass (70%)
Time Allowed: 90 minutes
Legal Authority: NYC Administrative Code Title 20, Subchapter 22; NY General Business Law
Article 36-A; NY Lien Law Article 3-A
DOMAIN DISTRIBUTION TABLE
Table
Domain Questions Weight Cognitive Focus
Licensing Requirements Q1, Q13–Q16 5 Recall /
(14%) Application
Consumer Protection Laws Q5–Q6, Q17–Q20 6 Application /
(17%) Analysis
Contract Requirements Q3, Q11–Q12, Q21– 7 Application /
Q24 (20%) Analysis
Trust Fund Requirements Q9–Q10, Q24–Q25 4 Analysis /
(11%) Calculation
Business Practices Q2, Q26–Q29 5 Application
(14%)
, Domain Questions Weight Cognitive Focus
Contractor Responsibilities Q4, Q30–Q32 4 Application
(11%)
Prohibited Practices & Q7–Q8, Q33–Q35 5 Analysis
Enforcement (14%)
TOTAL 35 100%
COMPREHENSIVE CONTRACTOR SCENARIO
Contract Signing Through Project Completion
SCENARIO: ABC Home Improvements LLC is a licensed NYC Home Improvement Contractor.
Maria, the qualifying applicant who passed the DCWP exam, owns 40% of the company. ABC is
hired by a homeowner in Queens to perform a kitchen renovation with a total contract price of
$18,500. The contract is signed on March 15, 2026.
Q1: Under NYC law, which individual associated with ABC Home Improvements LLC is required
to pass the DCWP Home Improvement Exam?
A. Any employee who will supervise the job site
B. Any salesperson who negotiates the contract with the homeowner
C. Maria, as a member owning 40% of the company [CORRECT]
D. The subcontractor who will install the cabinets
Correct Answer: C
Rationale: Under NYC Administrative Code §20-386, a sole proprietor, general partner,
corporate officer, principal, director, member, or shareholder owning 10% or more of company
stock must pass the Home Improvement Exam. Maria, as a 40% member, is the qualifying
applicant. Salespersons need a separate Home Improvement Salesperson license but do not
satisfy the company exam requirement.
, Q2: The homeowner pays ABC a deposit of $5,000 upon signing the contract. Under NYC law,
what is the maximum deposit ABC may legally require for this $18,500 contract?
A. $5,000, because it is less than one-third of the contract price
B. $4,625, which is 25% of the total contract price [CORRECT]
C. $9,250, which is 50% of the total contract price
D. There is no statutory limit on deposits for licensed contractors
Correct Answer: B
Rationale: NYC Administrative Code §20-394.1 requires that no home improvement contractor
shall accept a deposit exceeding 25% of the total contract price before work begins. For an
$18,500 contract, the maximum lawful deposit is $4,625. Excessive deposits are a common
violation and subject to civil penalties.
Q3: Two weeks into the project, the homeowner requests upgraded granite countertops that
will increase the contract price by $3,200. Under NYC law, how must ABC document this
change?
A. A verbal agreement between Maria and the homeowner is sufficient since they have an
established relationship
B. A written change order signed by both parties specifying the new work, materials, and price
[CORRECT]
C. An email from the homeowner approving the upgrade is sufficient documentation
D. ABC may simply add the cost to the final invoice without additional documentation
Correct Answer: B
Rationale: NYC Administrative Code §20-394.1 mandates that any change to a home
improvement contract must be documented in a written change order signed by both the
contractor and the consumer. The change order must specify the scope of the additional work,
materials to be used, and the revised price. Verbal agreements or informal approvals do not
satisfy the statutory requirement.
Q4: During the renovation, ABC's crew discovers that the existing electrical wiring does not
meet current code requirements. What is ABC's legal obligation?
A. Complete the kitchen renovation without addressing the electrical issue to avoid additional
costs
B. Notify the homeowner and ensure all work, including the electrical upgrade, complies with
applicable building codes and permits [CORRECT]
LICENSE EXAM
Department of Consumer and Worker
Protection (DCWP) — 2026/2027 Edition
Exam Format: 35 Multiple-Choice Questions
Official Exam: 30 questions, minimum 21 correct to pass (70%)
Time Allowed: 90 minutes
Legal Authority: NYC Administrative Code Title 20, Subchapter 22; NY General Business Law
Article 36-A; NY Lien Law Article 3-A
DOMAIN DISTRIBUTION TABLE
Table
Domain Questions Weight Cognitive Focus
Licensing Requirements Q1, Q13–Q16 5 Recall /
(14%) Application
Consumer Protection Laws Q5–Q6, Q17–Q20 6 Application /
(17%) Analysis
Contract Requirements Q3, Q11–Q12, Q21– 7 Application /
Q24 (20%) Analysis
Trust Fund Requirements Q9–Q10, Q24–Q25 4 Analysis /
(11%) Calculation
Business Practices Q2, Q26–Q29 5 Application
(14%)
, Domain Questions Weight Cognitive Focus
Contractor Responsibilities Q4, Q30–Q32 4 Application
(11%)
Prohibited Practices & Q7–Q8, Q33–Q35 5 Analysis
Enforcement (14%)
TOTAL 35 100%
COMPREHENSIVE CONTRACTOR SCENARIO
Contract Signing Through Project Completion
SCENARIO: ABC Home Improvements LLC is a licensed NYC Home Improvement Contractor.
Maria, the qualifying applicant who passed the DCWP exam, owns 40% of the company. ABC is
hired by a homeowner in Queens to perform a kitchen renovation with a total contract price of
$18,500. The contract is signed on March 15, 2026.
Q1: Under NYC law, which individual associated with ABC Home Improvements LLC is required
to pass the DCWP Home Improvement Exam?
A. Any employee who will supervise the job site
B. Any salesperson who negotiates the contract with the homeowner
C. Maria, as a member owning 40% of the company [CORRECT]
D. The subcontractor who will install the cabinets
Correct Answer: C
Rationale: Under NYC Administrative Code §20-386, a sole proprietor, general partner,
corporate officer, principal, director, member, or shareholder owning 10% or more of company
stock must pass the Home Improvement Exam. Maria, as a 40% member, is the qualifying
applicant. Salespersons need a separate Home Improvement Salesperson license but do not
satisfy the company exam requirement.
, Q2: The homeowner pays ABC a deposit of $5,000 upon signing the contract. Under NYC law,
what is the maximum deposit ABC may legally require for this $18,500 contract?
A. $5,000, because it is less than one-third of the contract price
B. $4,625, which is 25% of the total contract price [CORRECT]
C. $9,250, which is 50% of the total contract price
D. There is no statutory limit on deposits for licensed contractors
Correct Answer: B
Rationale: NYC Administrative Code §20-394.1 requires that no home improvement contractor
shall accept a deposit exceeding 25% of the total contract price before work begins. For an
$18,500 contract, the maximum lawful deposit is $4,625. Excessive deposits are a common
violation and subject to civil penalties.
Q3: Two weeks into the project, the homeowner requests upgraded granite countertops that
will increase the contract price by $3,200. Under NYC law, how must ABC document this
change?
A. A verbal agreement between Maria and the homeowner is sufficient since they have an
established relationship
B. A written change order signed by both parties specifying the new work, materials, and price
[CORRECT]
C. An email from the homeowner approving the upgrade is sufficient documentation
D. ABC may simply add the cost to the final invoice without additional documentation
Correct Answer: B
Rationale: NYC Administrative Code §20-394.1 mandates that any change to a home
improvement contract must be documented in a written change order signed by both the
contractor and the consumer. The change order must specify the scope of the additional work,
materials to be used, and the revised price. Verbal agreements or informal approvals do not
satisfy the statutory requirement.
Q4: During the renovation, ABC's crew discovers that the existing electrical wiring does not
meet current code requirements. What is ABC's legal obligation?
A. Complete the kitchen renovation without addressing the electrical issue to avoid additional
costs
B. Notify the homeowner and ensure all work, including the electrical upgrade, complies with
applicable building codes and permits [CORRECT]
