NY Home Improvement Contractor Exam UPDATED ACTUAL
Questions and CORRECT Answers
Question: 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: What parts of a home can a H.I. include?
Correct Answer: Any part of the home OR land (including basements, driveways, fences, garages,
landscaping, patios, porches, sidewalks, swimming pools, and terraces.)
Question: What system installations are part of H.I.? (4)
Correct Answer: Central heating/air conditioning, Central vacuum, Doors, windows, awnings, and
Communication systems.
Question: 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
Question: When is Painting or decoration of a building, residence, home, or apartment considered H.I.?
Correct Answer: When there is painting work being done as part of other home improvement work.
Question: 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: Who is a "contractor"?
Correct Answer: Anyone who owns, operates, maintains, conducts, controls, or transacts a home
improvement business and undertakes or agrees to perform any home improvement.
Question: What legal entity is a contractor required to be?
Correct Answer: A contractor may be an individual, a firm, a company, a partnership, or a corporation.
Question: What is a H.I. contract?
Correct Answer: An agreement between a contractor and a consumer or tenant for performance of a home
improvement
Question: What must a H.I. contract detail?
Correct Answer: All labor, services, and materials to be furnished and performed.
Question: Who is a "salesperson"?
Correct Answer: Someone who negotiates a H.I. contract with a consumer or tenant, or solicits a home
improvement contract from an owner or tenant.
Question: Who must have a DCA license?
Correct Answer: Any person who solicits, canvasses, sells, performs, or obtains a H.I. contract as a
contractor or salesperson must have a DCA license.
, Question: Does an individual employee of a contractor, who does not solicit or negotiate contracts, need to
be licensed?
Correct Answer: No
Question: What is the maximum amount an H.I. job can be to not require a licensed contractor?
Correct Answer: $200
Question: Do plumbers and electricians who do not perform work outside their trade need a H.I. license?
Correct Answer: No, they have their own trade licenses.
Question: When would an architect or engineer involved with an H.I. project need a contractor's license?
Correct Answer: If they are physically performing H.I. functions outside the scope of an architect or
engineer.
Question: Must a H.I. Contractor license be posted?
Correct Answer: Yes, it must be posted in the Contractor's office where all consumers can see it, or show
it to consumers upon request.
Question: Change of business address, ownership, management, or trade name must be reported to DCA
within how many days?
Correct Answer: 10 days
Question: 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.
Question: 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: May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the home owner
(customer)?
Correct Answer: No, The prime contractor must secure all necessary permits, licenses, Certificates of
Occupancy, or exemptions necessary to complete the contract in accordance with state and local building
laws.
Question: How many years must a H.I. Contractor maintain copies of contracts, books of account, and
other records reflecting all transactions related to the home improvement business?
Correct Answer: Six (6) years or the length of time of any contractual guarantee, whichever is longer.
Question: 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: No work should be performed and no money should be paid until after the ____ day cancellation
period?
Correct Answer: 3 days
Questions and CORRECT Answers
Question: 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: What parts of a home can a H.I. include?
Correct Answer: Any part of the home OR land (including basements, driveways, fences, garages,
landscaping, patios, porches, sidewalks, swimming pools, and terraces.)
Question: What system installations are part of H.I.? (4)
Correct Answer: Central heating/air conditioning, Central vacuum, Doors, windows, awnings, and
Communication systems.
Question: 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
Question: When is Painting or decoration of a building, residence, home, or apartment considered H.I.?
Correct Answer: When there is painting work being done as part of other home improvement work.
Question: 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: Who is a "contractor"?
Correct Answer: Anyone who owns, operates, maintains, conducts, controls, or transacts a home
improvement business and undertakes or agrees to perform any home improvement.
Question: What legal entity is a contractor required to be?
Correct Answer: A contractor may be an individual, a firm, a company, a partnership, or a corporation.
Question: What is a H.I. contract?
Correct Answer: An agreement between a contractor and a consumer or tenant for performance of a home
improvement
Question: What must a H.I. contract detail?
Correct Answer: All labor, services, and materials to be furnished and performed.
Question: Who is a "salesperson"?
Correct Answer: Someone who negotiates a H.I. contract with a consumer or tenant, or solicits a home
improvement contract from an owner or tenant.
Question: Who must have a DCA license?
Correct Answer: Any person who solicits, canvasses, sells, performs, or obtains a H.I. contract as a
contractor or salesperson must have a DCA license.
, Question: Does an individual employee of a contractor, who does not solicit or negotiate contracts, need to
be licensed?
Correct Answer: No
Question: What is the maximum amount an H.I. job can be to not require a licensed contractor?
Correct Answer: $200
Question: Do plumbers and electricians who do not perform work outside their trade need a H.I. license?
Correct Answer: No, they have their own trade licenses.
Question: When would an architect or engineer involved with an H.I. project need a contractor's license?
Correct Answer: If they are physically performing H.I. functions outside the scope of an architect or
engineer.
Question: Must a H.I. Contractor license be posted?
Correct Answer: Yes, it must be posted in the Contractor's office where all consumers can see it, or show
it to consumers upon request.
Question: Change of business address, ownership, management, or trade name must be reported to DCA
within how many days?
Correct Answer: 10 days
Question: 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.
Question: 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: May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the home owner
(customer)?
Correct Answer: No, The prime contractor must secure all necessary permits, licenses, Certificates of
Occupancy, or exemptions necessary to complete the contract in accordance with state and local building
laws.
Question: How many years must a H.I. Contractor maintain copies of contracts, books of account, and
other records reflecting all transactions related to the home improvement business?
Correct Answer: Six (6) years or the length of time of any contractual guarantee, whichever is longer.
Question: 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: No work should be performed and no money should be paid until after the ____ day cancellation
period?
Correct Answer: 3 days
