NY Home Improvement Contractor Exam
Study Guide Questions and Correct Answers
Question 1
What type of guarantees or warranties can be made?
Correct Answer
Only as long as a defect is likely to show up.
Question 2
What schedule should be inclduded with the H.I. contract?
Correct Answer
Schedule of payments and the work/services to be performed if the contract calls
for incremental payments.
Question 3
What percentage of a customers payments can a Contractor use for administrative,
overhead, and other projects?
Correct Answer
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.
Question 4
How many business locations can a H.I. Contractor's license cover?
Correct Answer
One. A seperate license is required for each place of business.
Page 1 of 31
,Question 5
What is net profit of a job?
Correct Answer
The final profit of any job after expenses.
Question 6
When must the consumer receive a completed, legible copy of the H.I. contract?
Correct Answer
At the time of signing and before any work is done.
Question 7
When is Painting or decoration of a building, residence, home, or apartment NOT
considered H.I.?
Correct Answer
When it is a standalone job not part of of other home improvement work.
Question 8
What type of guarantees or warranties can NOT be made?
Correct Answer
"lifetime" guarantees or warranties
Question 9
Does an individual employee of a contractor, who does not solicit or negotiate
contracts, need to be licensed?
Correct Answer
No
Page 2 of 31
,Question 10
Must a contractor or salesperson provide the consumer with a separate Notice of
Cancellation?
Correct Answer
Yes. At the time of signing the contractor or salesperson must attach to the signed
contract two copies of a separate, completed form titled "Notice of Cancellation."
Question 11
Does the H.I. contract have to be in englsh?
Correct Answer
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.
Question 12
Whose responsibility is it to make sure that any addition or alterations meet building
code standards and do not violate local zoning laws?
Correct Answer
the H.I. Contractor
Question 13
Can a H.I. Contractor arrange a home loan or a home improvement loan for a
consumer?
Correct Answer
No, nor can they act as an agent for, advertise, or promote loans.
Question 14
Change of business address, ownership, management, or trade name must be
reported to DCA within how many days?
Correct Answer
10 days
Page 3 of 31
, Question 15
When and how does a H.I. Contractor's license get renewed?
Correct Answer
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.
Question 16
What system installations are part of H.I.? (4)
Correct Answer
Central heating/air conditioning, Central vacuum, Doors, windows, awnings, and
Communication systems.
Question 17
What is "home improvement" (H.I.)? (C R R R R A A I)
Correct Answer
the construction, repair, remodeling, alteration, rehabilitation, renovation,
improvement, or addition to any land or building used as a residence or dwelling
place.
Question 18
What costs must be included in the H.I. contract?
Correct Answer
labor and materials
Question 19
What is NOT considered H.I.?
Correct Answer
Construction of a new home or building, Sale of goods or materials in connection
with the installation of or application of goods or materials, Work performed on a
residence owned or controlled by the state or municipality
Page 4 of 31
Study Guide Questions and Correct Answers
Question 1
What type of guarantees or warranties can be made?
Correct Answer
Only as long as a defect is likely to show up.
Question 2
What schedule should be inclduded with the H.I. contract?
Correct Answer
Schedule of payments and the work/services to be performed if the contract calls
for incremental payments.
Question 3
What percentage of a customers payments can a Contractor use for administrative,
overhead, and other projects?
Correct Answer
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.
Question 4
How many business locations can a H.I. Contractor's license cover?
Correct Answer
One. A seperate license is required for each place of business.
Page 1 of 31
,Question 5
What is net profit of a job?
Correct Answer
The final profit of any job after expenses.
Question 6
When must the consumer receive a completed, legible copy of the H.I. contract?
Correct Answer
At the time of signing and before any work is done.
Question 7
When is Painting or decoration of a building, residence, home, or apartment NOT
considered H.I.?
Correct Answer
When it is a standalone job not part of of other home improvement work.
Question 8
What type of guarantees or warranties can NOT be made?
Correct Answer
"lifetime" guarantees or warranties
Question 9
Does an individual employee of a contractor, who does not solicit or negotiate
contracts, need to be licensed?
Correct Answer
No
Page 2 of 31
,Question 10
Must a contractor or salesperson provide the consumer with a separate Notice of
Cancellation?
Correct Answer
Yes. At the time of signing the contractor or salesperson must attach to the signed
contract two copies of a separate, completed form titled "Notice of Cancellation."
Question 11
Does the H.I. contract have to be in englsh?
Correct Answer
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.
Question 12
Whose responsibility is it to make sure that any addition or alterations meet building
code standards and do not violate local zoning laws?
Correct Answer
the H.I. Contractor
Question 13
Can a H.I. Contractor arrange a home loan or a home improvement loan for a
consumer?
Correct Answer
No, nor can they act as an agent for, advertise, or promote loans.
Question 14
Change of business address, ownership, management, or trade name must be
reported to DCA within how many days?
Correct Answer
10 days
Page 3 of 31
, Question 15
When and how does a H.I. Contractor's license get renewed?
Correct Answer
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.
Question 16
What system installations are part of H.I.? (4)
Correct Answer
Central heating/air conditioning, Central vacuum, Doors, windows, awnings, and
Communication systems.
Question 17
What is "home improvement" (H.I.)? (C R R R R A A I)
Correct Answer
the construction, repair, remodeling, alteration, rehabilitation, renovation,
improvement, or addition to any land or building used as a residence or dwelling
place.
Question 18
What costs must be included in the H.I. contract?
Correct Answer
labor and materials
Question 19
What is NOT considered H.I.?
Correct Answer
Construction of a new home or building, Sale of goods or materials in connection
with the installation of or application of goods or materials, Work performed on a
residence owned or controlled by the state or municipality
Page 4 of 31