NYC HOME IMPROVEMENT CONTRACTOR EXAM NEWEST EVALUATED EXAM
PRACTICE 100 QUESTIONS 2026-2027|ORIGINAL QUESTIONS & ANSWERS
|DETAILED RATIONALES |HINTED COMPLETE EXAM PREP GRADED
A+*INSTANT DOWNLOAD PDF*
1. Which of the following is considered “home improvement” under NYC
Home Improvement Business Law?
A. Construction of an entirely new residential building
B. Sale of materials where the seller does not participate in installation
C. Remodeling a residential basement
D. Painting an apartment when no other home improvement services are
provided
Answer: C. Remodeling a residential basement
Basement remodeling is expressly included within the definition of home
improvement.
2. Which activity is specifically excluded from the definition of home
improvement?
A. Installing storm windows
B. Constructing a new home
C. Installing an awning
D. Remodeling a garage
Answer: B. Constructing a new home
Construction of a new home or building is not considered home improvement
under the DCWP examination guide.
3. A person who solicits a home improvement contract but does not
personally perform the work is:
A. Exempt from licensing
B. Required to hold a DCWP Home Improvement Contractor license
C. Required only to register with DOB
D. Required only to obtain a salesperson license
Answer: B. Required to hold a DCWP Home Improvement Contractor license
,Anyone who solicits, canvasses, sells, performs, or obtains a home
improvement contract as a contractor must be licensed.
4. Which individual generally does NOT require a separate DCWP Home
Improvement Contractor license?
A. An independent subcontractor performing home improvement work
B. A person operating a home improvement business
C. An employee working for a licensed contractor
D. A contractor soliciting home improvement contracts
Answer: C. An employee working for a licensed contractor
An individual employee working for the contractor, including a salesperson,
does not require a separate DCWP contractor license.
5. A contractor's license must be:
A. Kept only at the contractor's home
B. Posted in the office where consumers can see it or shown upon request
C. Filed with every subcontractor
D. Displayed only at the job site
Answer: B. Posted in the office where consumers can see it or shown upon
request
The license must be posted in the contractor's office where consumers can see
it or be shown to consumers upon request.
6. A contractor changes the business address. How much advance notice
must generally be given to DCWP?
A. 3 days
B. 5 days
C. 10 days
D. 30 days
Answer: C. 10 days
DCWP must be notified at least 10 days before a change to the business trade
name or address.
, 7. What is required before changing ownership or management of a
licensed home improvement business?
A. Only verbal notice to the consumer
B. Advance approval from DCWP
C. Approval from DOT
D. Approval from every subcontractor
Answer: B. Advance approval from DCWP
A change of ownership or management requires advance notification to and
approval from DCWP.
8. A prime contractor enters into a residential renovation contract. Who
has the primary responsibility for securing required permits?
A. The homeowner
B. The subcontractor
C. The prime contractor
D. The architect only
Answer: C. The prime contractor
The prime contractor must secure necessary permits, licenses, Certificates of
Occupancy, or applicable exemptions.
9. How long must a home improvement contractor generally maintain
contracts, account books, and related transaction records?
A. 1 year
B. 3 years
C. 5 years
D. 6 years or the length of a contractual guarantee, whichever is longer
Answer: D. 6 years or the length of a contractual guarantee, whichever is
longer
The required retention period is six years or the length of the contractual
guarantee, whichever is longer.
10.A contractor receives money from a homeowner before completing the
project. The contractor may use those funds for unrelated business
expenses:
, A. Immediately, without restriction
B. Only after the home improvement is completed and related expenses are
paid
C. Whenever the contractor needs cash flow
D. Only if the subcontractor agrees
Answer: B. Only after the home improvement is completed and related
expenses are paid
Funds received must be used for expenses directly related to the home
improvement unless the project is completed and all direct labor, materials,
and subcontractor expenses have been paid.
11.Under the DCWP examination guide, when should work generally begin
in relation to the three-business-day cancellation period?
A. Immediately after signing
B. Before the cancellation period expires
C. After the three-day cancellation period
D. Only after final payment
Answer: C. After the three-day cancellation period
The guide states that no work should be performed and no money should be
paid until after the three-day cancellation period.
12.Which action is prohibited for a home improvement contractor?
A. Providing a written estimate when requested
B. Maintaining transaction records
C. Abandoning agreed-upon work
D. Obtaining required permits
Answer: C. Abandoning agreed-upon work
Abandoning or failing to perform agreed-upon work is prohibited.
13.A contractor makes a substantial false statement to persuade a
homeowner to sign a contract. This is:
A. Permitted sales technique
B. Substantial misrepresentation
PRACTICE 100 QUESTIONS 2026-2027|ORIGINAL QUESTIONS & ANSWERS
|DETAILED RATIONALES |HINTED COMPLETE EXAM PREP GRADED
A+*INSTANT DOWNLOAD PDF*
1. Which of the following is considered “home improvement” under NYC
Home Improvement Business Law?
A. Construction of an entirely new residential building
B. Sale of materials where the seller does not participate in installation
C. Remodeling a residential basement
D. Painting an apartment when no other home improvement services are
provided
Answer: C. Remodeling a residential basement
Basement remodeling is expressly included within the definition of home
improvement.
2. Which activity is specifically excluded from the definition of home
improvement?
A. Installing storm windows
B. Constructing a new home
C. Installing an awning
D. Remodeling a garage
Answer: B. Constructing a new home
Construction of a new home or building is not considered home improvement
under the DCWP examination guide.
3. A person who solicits a home improvement contract but does not
personally perform the work is:
A. Exempt from licensing
B. Required to hold a DCWP Home Improvement Contractor license
C. Required only to register with DOB
D. Required only to obtain a salesperson license
Answer: B. Required to hold a DCWP Home Improvement Contractor license
,Anyone who solicits, canvasses, sells, performs, or obtains a home
improvement contract as a contractor must be licensed.
4. Which individual generally does NOT require a separate DCWP Home
Improvement Contractor license?
A. An independent subcontractor performing home improvement work
B. A person operating a home improvement business
C. An employee working for a licensed contractor
D. A contractor soliciting home improvement contracts
Answer: C. An employee working for a licensed contractor
An individual employee working for the contractor, including a salesperson,
does not require a separate DCWP contractor license.
5. A contractor's license must be:
A. Kept only at the contractor's home
B. Posted in the office where consumers can see it or shown upon request
C. Filed with every subcontractor
D. Displayed only at the job site
Answer: B. Posted in the office where consumers can see it or shown upon
request
The license must be posted in the contractor's office where consumers can see
it or be shown to consumers upon request.
6. A contractor changes the business address. How much advance notice
must generally be given to DCWP?
A. 3 days
B. 5 days
C. 10 days
D. 30 days
Answer: C. 10 days
DCWP must be notified at least 10 days before a change to the business trade
name or address.
, 7. What is required before changing ownership or management of a
licensed home improvement business?
A. Only verbal notice to the consumer
B. Advance approval from DCWP
C. Approval from DOT
D. Approval from every subcontractor
Answer: B. Advance approval from DCWP
A change of ownership or management requires advance notification to and
approval from DCWP.
8. A prime contractor enters into a residential renovation contract. Who
has the primary responsibility for securing required permits?
A. The homeowner
B. The subcontractor
C. The prime contractor
D. The architect only
Answer: C. The prime contractor
The prime contractor must secure necessary permits, licenses, Certificates of
Occupancy, or applicable exemptions.
9. How long must a home improvement contractor generally maintain
contracts, account books, and related transaction records?
A. 1 year
B. 3 years
C. 5 years
D. 6 years or the length of a contractual guarantee, whichever is longer
Answer: D. 6 years or the length of a contractual guarantee, whichever is
longer
The required retention period is six years or the length of the contractual
guarantee, whichever is longer.
10.A contractor receives money from a homeowner before completing the
project. The contractor may use those funds for unrelated business
expenses:
, A. Immediately, without restriction
B. Only after the home improvement is completed and related expenses are
paid
C. Whenever the contractor needs cash flow
D. Only if the subcontractor agrees
Answer: B. Only after the home improvement is completed and related
expenses are paid
Funds received must be used for expenses directly related to the home
improvement unless the project is completed and all direct labor, materials,
and subcontractor expenses have been paid.
11.Under the DCWP examination guide, when should work generally begin
in relation to the three-business-day cancellation period?
A. Immediately after signing
B. Before the cancellation period expires
C. After the three-day cancellation period
D. Only after final payment
Answer: C. After the three-day cancellation period
The guide states that no work should be performed and no money should be
paid until after the three-day cancellation period.
12.Which action is prohibited for a home improvement contractor?
A. Providing a written estimate when requested
B. Maintaining transaction records
C. Abandoning agreed-upon work
D. Obtaining required permits
Answer: C. Abandoning agreed-upon work
Abandoning or failing to perform agreed-upon work is prohibited.
13.A contractor makes a substantial false statement to persuade a
homeowner to sign a contract. This is:
A. Permitted sales technique
B. Substantial misrepresentation
