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NYC Home Improvement Contractor License EXAM QUESTIONS
AND CORRECT VERIFIED SOLUTIONS LATEST UPDATE THIS
YEAR – JUST RELEASED
NYC Home Improvement Contractor License Exam
10-Line Exam Coverage in Points Form
1. Agency Roles & Jurisdiction – DCWP (Department of Consumer and Worker Protection)
issues HIC licenses and enforces the law; DOB issues building permits; DOT handles
sidewalk/street permits; LPC reviews historic district work; DEP manages water/sewer
2. Definition & Scope – Home improvement = construction, repair, remodeling, or addition
to residential property including basements, driveways, fences, garages, landscaping,
patios, porches, sidewalks, swimming pools, terraces; excludes new home construction
and painting alone
3. Licensing Requirements – Mandatory for work valued at $200 or more; applies to
contractors and salespersons who solicit/negotiate contracts; exemptions: employees
not soliciting contracts, plumbers/electricians not doing home improvement work,
architects/engineers within scope
4. Exam Format & Passing – 30 multiple-choice questions; 21 correct required to pass
(70%); $50 fee; must pass within 60 days; only one designee per company needs to pass;
covers DCWP law, contracts, advertising, and business knowledge
5. Contract Requirements – Must be written and signed by all parties; must include
contractor name/address/license number, start/completion dates, work description,
payment schedule, 3-day cancellation notice; deposit limited to 25%; copies to
consumer at signing
6. Three-Day Right to Cancel – Consumer may cancel within 3 business days without
penalty; must provide oral and written notice; cancellation form must be attached; if
contractor fails to comply, cancellation right extends indefinitely
7. Financial Protection – $20,000 surety bond OR $200 Trust Fund enrollment required;
protects consumers from non-performance; bond must name DCWP as certificate
holder; records must be maintained for 6 years (or guarantee period, whichever is
longer)
8. Prohibited Practices – Cannot abandon work, make misrepresentations, commit fraud,
publish false ads, act as agent for home loans, fail to notify DCWP of changes, or operate
under unlicensed name
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9. Permits & Compliance – Prime contractor must secure all necessary permits; must
comply with building, sanitary, fire, and health laws; DOT permit required for
sidewalk/dumpster work; DOB permits for structural work; LPC approval for historic
districts
10. Recordkeeping & Penalties – Records must be kept for 6 years; contractors must use
payments for project-related expenses; false representations void contracts and subject
to restitution; penalties for operating without a license
COMPREHENSIVE PRACTICE QUESTIONS
Section 1: Agency Roles & Jurisdiction
1. Which NYC agency is primarily responsible for issuing Home Improvement Contractor (HIC)
licenses?
A) DOB (Department of Buildings)
B) DCWP (Department of Consumer and Worker Protection)
C) DOT (Department of Transportation)
D) LPC (Landmarks Preservation Commission)
Answer: B
Rationale: The Department of Consumer and Worker Protection (DCWP), formerly known as
DCA, is the agency that licenses home improvement contractors and enforces the Home
Improvement Contractor law . DOB issues construction permits but not HIC licenses . DOT
handles street/sidewalk permits . LPC reviews historic district work .
2. What does DOB stand for in NYC construction regulation?
, Page 3 of 122
A) Department of Business
B) Department of Buildings
C) Department of Bridges
D) Department of Building Codes
Answer: B
Rationale: DOB is the Department of Buildings. It is responsible for issuing permits for
construction, alterations, and additions to buildings and enforcing the NYC Building Code .
Contractors must secure necessary permits from DOB for most home improvement projects.
3. What does DCWP stand for in the context of NYC home improvement licensing?
A) Department of City Works and Permits
B) Department of Construction and Worker Protection
C) Department of Consumer and Worker Protection
D) District Code and Wiring Protection
Answer: C
Rationale: DCWP is the Department of Consumer and Worker Protection, the current name for
the agency that licenses and regulates home improvement contractors in New York City . It was
formerly known as DCA (Department of Consumer Affairs).
4. A contractor needs to place a dumpster on the street for a home improvement project.
Which agency must the contractor contact for a permit?
, Page 4 of 122
A) DCWP
B) DOB
C) DOT
D) DEP
Answer: C
Rationale: The Department of Transportation (DOT) issues permits for work affecting sidewalks,
curbs, or streets, including dumpster placement . DCWP licenses contractors but does not issue
street use permits . DOB issues building permits, not street use permits.
5. Which agency would a contractor contact to verify if a property is in a historic district
requiring special review?
A) DCWP
B) DOB
C) LPC (Landmarks Preservation Commission)
D) DOT
Answer: C
Rationale: The Landmarks Preservation Commission (LPC) reviews and approves work in historic
districts . Contractors must check with LPC before starting work on landmarked properties. DOB
issues building permits but does not handle landmark approvals .
6. Which agency is responsible for investigating consumer complaints about home
improvement contractors?
NYC Home Improvement Contractor License EXAM QUESTIONS
AND CORRECT VERIFIED SOLUTIONS LATEST UPDATE THIS
YEAR – JUST RELEASED
NYC Home Improvement Contractor License Exam
10-Line Exam Coverage in Points Form
1. Agency Roles & Jurisdiction – DCWP (Department of Consumer and Worker Protection)
issues HIC licenses and enforces the law; DOB issues building permits; DOT handles
sidewalk/street permits; LPC reviews historic district work; DEP manages water/sewer
2. Definition & Scope – Home improvement = construction, repair, remodeling, or addition
to residential property including basements, driveways, fences, garages, landscaping,
patios, porches, sidewalks, swimming pools, terraces; excludes new home construction
and painting alone
3. Licensing Requirements – Mandatory for work valued at $200 or more; applies to
contractors and salespersons who solicit/negotiate contracts; exemptions: employees
not soliciting contracts, plumbers/electricians not doing home improvement work,
architects/engineers within scope
4. Exam Format & Passing – 30 multiple-choice questions; 21 correct required to pass
(70%); $50 fee; must pass within 60 days; only one designee per company needs to pass;
covers DCWP law, contracts, advertising, and business knowledge
5. Contract Requirements – Must be written and signed by all parties; must include
contractor name/address/license number, start/completion dates, work description,
payment schedule, 3-day cancellation notice; deposit limited to 25%; copies to
consumer at signing
6. Three-Day Right to Cancel – Consumer may cancel within 3 business days without
penalty; must provide oral and written notice; cancellation form must be attached; if
contractor fails to comply, cancellation right extends indefinitely
7. Financial Protection – $20,000 surety bond OR $200 Trust Fund enrollment required;
protects consumers from non-performance; bond must name DCWP as certificate
holder; records must be maintained for 6 years (or guarantee period, whichever is
longer)
8. Prohibited Practices – Cannot abandon work, make misrepresentations, commit fraud,
publish false ads, act as agent for home loans, fail to notify DCWP of changes, or operate
under unlicensed name
, Page 2 of 122
9. Permits & Compliance – Prime contractor must secure all necessary permits; must
comply with building, sanitary, fire, and health laws; DOT permit required for
sidewalk/dumpster work; DOB permits for structural work; LPC approval for historic
districts
10. Recordkeeping & Penalties – Records must be kept for 6 years; contractors must use
payments for project-related expenses; false representations void contracts and subject
to restitution; penalties for operating without a license
COMPREHENSIVE PRACTICE QUESTIONS
Section 1: Agency Roles & Jurisdiction
1. Which NYC agency is primarily responsible for issuing Home Improvement Contractor (HIC)
licenses?
A) DOB (Department of Buildings)
B) DCWP (Department of Consumer and Worker Protection)
C) DOT (Department of Transportation)
D) LPC (Landmarks Preservation Commission)
Answer: B
Rationale: The Department of Consumer and Worker Protection (DCWP), formerly known as
DCA, is the agency that licenses home improvement contractors and enforces the Home
Improvement Contractor law . DOB issues construction permits but not HIC licenses . DOT
handles street/sidewalk permits . LPC reviews historic district work .
2. What does DOB stand for in NYC construction regulation?
, Page 3 of 122
A) Department of Business
B) Department of Buildings
C) Department of Bridges
D) Department of Building Codes
Answer: B
Rationale: DOB is the Department of Buildings. It is responsible for issuing permits for
construction, alterations, and additions to buildings and enforcing the NYC Building Code .
Contractors must secure necessary permits from DOB for most home improvement projects.
3. What does DCWP stand for in the context of NYC home improvement licensing?
A) Department of City Works and Permits
B) Department of Construction and Worker Protection
C) Department of Consumer and Worker Protection
D) District Code and Wiring Protection
Answer: C
Rationale: DCWP is the Department of Consumer and Worker Protection, the current name for
the agency that licenses and regulates home improvement contractors in New York City . It was
formerly known as DCA (Department of Consumer Affairs).
4. A contractor needs to place a dumpster on the street for a home improvement project.
Which agency must the contractor contact for a permit?
, Page 4 of 122
A) DCWP
B) DOB
C) DOT
D) DEP
Answer: C
Rationale: The Department of Transportation (DOT) issues permits for work affecting sidewalks,
curbs, or streets, including dumpster placement . DCWP licenses contractors but does not issue
street use permits . DOB issues building permits, not street use permits.
5. Which agency would a contractor contact to verify if a property is in a historic district
requiring special review?
A) DCWP
B) DOB
C) LPC (Landmarks Preservation Commission)
D) DOT
Answer: C
Rationale: The Landmarks Preservation Commission (LPC) reviews and approves work in historic
districts . Contractors must check with LPC before starting work on landmarked properties. DOB
issues building permits but does not handle landmark approvals .
6. Which agency is responsible for investigating consumer complaints about home
improvement contractors?
