2026/2027 – Complete Exam-Style
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Content Area Overview
This actual examination reflects the regulatory and business knowledge required for success on the NYC
Home Improvement Contractor Licensing Exam. It is designed to evaluate the applicant's understanding
of NYC consumer protection rules, written contract requirements, the three-business-day cancellation
right, the 25% deposit cap, Lien Law, and general industry standards. The exam covers four main topic
areas: The Basics of the City's Home Improvement Business Law, Contracts and Cancellations,
Advertising and Selling Practices, and General Industry and Business Knowledge. This authentic question
bank serves as a comprehensive resource for home improvement contractors, business owners, and
qualifying applicants demonstrating mastery of NYC home improvement regulations for the 2026/2027
academic year.
Section I: Basics of the City's Home Improvement Business Law (8 Questions)
Q1. Under NYC Home Improvement Law, which of the following activities is considered a home
improvement?
A. Construction of a brand-new single-family residence on vacant land
B. Repairing a homeowner's existing driveway and installing a new fence
C. Selling paint and wallpaper to a homeowner for self-installation
D. Performing electrical work in a state-owned apartment building
B. Repairing a homeowner's existing driveway and installing a new fence [CORRECT]
The best answer is B. Home improvement includes the repair, replacement, remodeling, or addition to
any land or building used as a residence, which specifically covers driveways and fences. New home
construction, sale of materials without installation, and work on state-owned properties are all excluded
from the definition. This aligns with DCWP regulations and NYC Home Improvement Law definitions.
, Correct Answer: B
Q2. A contractor performs kitchen remodeling work for a homeowner. The total contract price is $150.
Which statement is correct?
A. The contractor does not need a DCWP license because the job is under $200
B. The contractor must have a DCWP license regardless of the contract price
C. The contractor only needs a license if the work requires a building permit
D. The $200 exemption applies only to materials, not labor
A. The contractor does not need a DCWP license because the job is under $200 [CORRECT]
The best answer is A. NYC Home Improvement Law exempts work under $200 from licensing
requirements. However, contractors should be cautious about splitting jobs to stay under this threshold,
as that could be viewed as evasion. For any work $200 or above, a DCWP license is mandatory. This
matches the regulatory requirement that the $200 exemption is a clear threshold in the law.
Correct Answer: A
Q3. A plumber is hired to replace a leaking water heater in a private residence. The plumber does not
perform any other home improvement work. Which statement is correct?
A. The plumber must obtain a DCWP home improvement contractor license before starting work
B. The plumber is exempt from the DCWP home improvement license because plumbers who do not
perform home improvement work are exempt
C. The plumber must obtain both a DCWP license and a Department of Buildings permit
D. The plumber is exempt only if the job costs less than $500
B. The plumber is exempt from the DCWP home improvement license because plumbers who do not
perform home improvement work are exempt [CORRECT]
The best answer is B. Licensed plumbers and electricians are exempt from the DCWP home
improvement contractor license requirement provided they are performing work within their licensed
trade and not engaging in broader home improvement activities. This is an important distinction—once
a plumber starts doing carpentry, tiling, or other home improvement work, the exemption no longer
applies. This aligns with DCWP regulations and NYC Home Improvement Law exemption categories.
Correct Answer: B
Q4. A home improvement contractor changes their business address. How many days before the change
must they notify DCWP?