NYC Home Improvement Contractor Exam (100+
Qs) – Study Guide with Verified Answers | Laws,
Permits, Contracts, Licensing | 2025/2026 | New
York City
Subcontractor Licensing - ANSWER -A subcontractor must have a DCA license
to perform home improvement work in New York City.
Contract Attachment Requirement - ANSWER -The contractor or sales person
must attach two copies of a separate completed form titled 'Notice of Cancellation'
to the signed contract.
Employee Obligations - ANSWER -You must cover employees with workers'
compensation and disability insurance.
Employee wages reporting - ANSWER -Must report employee wages to the
Internal Revenue Service, and you must withhold taxes.
Penalties for false representation - ANSWER -A contractor or sales person who
lies is subject to fines of up to 500 dollars for each separate misrepresentation;
additionally, a contract entered into after misrepresentation may be declared null
and void, and a contractor may be ordered to pay restitution to the consumer.
Penalties for operating without a license - ANSWER -Any person who owns or
operates a home improvement business without a license or after a license is
suspended or revoked is guilty of a misdemeanor and may be prosecuted
criminally and subject to up to six months imprisonment or $1000 in fines.
Home improvement definition - ANSWER -The construction, repair, replacement,
remodeling, alteration, conversion, rehabilitation, renovation, modernization,
improvement, or addition to any land or building or any part of the land or building
used or designed to be used as a residence or dwelling place, including basements,
driveways, fences, garages, landscaping, patios, porches, sidewalks, swimming
pools, and terraces.
Home improvement contract - ANSWER -A 'home improvement contract' is an
agreement, whether or not in writing, between a contractor and a consumer or
, tenant for performance of a home improvement and includes all labor, services,
and materials to be furnished and performed.
Employee legal authority - ANSWER -You must comply with the Federal
Immigration laws, which require employers to ensure that employees have legal
authority to work in the United States.
Additional penalty for unlicensed business - ANSWER -A person may be
prosecuted civilly and face fines of up to $100 per day for engaging in unlicensed
activity or aiding and abetting the operation of an unlicensed person or business.
Painting exterior of a house - ANSWER -You may require a suspended scaffold
and a rigging permit from DOB to paint the exterior of a home that is one story or
more, unless you can use a ladder to do the job.
Net profit of a job - ANSWER -Net profit is the final profit of any job after
expenses.
What is NOT home improvement - 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; Painting or decoration of a building,
residence, home, or apartment, when not related to home improvement work.
Difference between subcontractor and employee - ANSWER -A subcontractor is
an individual in business for himself or a firm in business for itself contracting to
do part of a home improvement contract with a prime contractor. An employee
works for wages and is under the employer's (prime or subcontractor) direct
supervision and control.
Consumer contract cancellation - ANSWER -Within 10 business days refund all
payments made under the contract, cancel and return money paid in connection
with the contract, terminate any security interest, and notify the consumer as to
whether the contractor intends to repossess or abandon any shipped delivered
materials.
Class One Self Hauler Registration - ANSWER -If you plan to haul or transport
waste resulting from your business operations, you must obtain a Class One Self
Hauler Registration from the New York City Business Integrity Commission.
Qs) – Study Guide with Verified Answers | Laws,
Permits, Contracts, Licensing | 2025/2026 | New
York City
Subcontractor Licensing - ANSWER -A subcontractor must have a DCA license
to perform home improvement work in New York City.
Contract Attachment Requirement - ANSWER -The contractor or sales person
must attach two copies of a separate completed form titled 'Notice of Cancellation'
to the signed contract.
Employee Obligations - ANSWER -You must cover employees with workers'
compensation and disability insurance.
Employee wages reporting - ANSWER -Must report employee wages to the
Internal Revenue Service, and you must withhold taxes.
Penalties for false representation - ANSWER -A contractor or sales person who
lies is subject to fines of up to 500 dollars for each separate misrepresentation;
additionally, a contract entered into after misrepresentation may be declared null
and void, and a contractor may be ordered to pay restitution to the consumer.
Penalties for operating without a license - ANSWER -Any person who owns or
operates a home improvement business without a license or after a license is
suspended or revoked is guilty of a misdemeanor and may be prosecuted
criminally and subject to up to six months imprisonment or $1000 in fines.
Home improvement definition - ANSWER -The construction, repair, replacement,
remodeling, alteration, conversion, rehabilitation, renovation, modernization,
improvement, or addition to any land or building or any part of the land or building
used or designed to be used as a residence or dwelling place, including basements,
driveways, fences, garages, landscaping, patios, porches, sidewalks, swimming
pools, and terraces.
Home improvement contract - ANSWER -A 'home improvement contract' is an
agreement, whether or not in writing, between a contractor and a consumer or
, tenant for performance of a home improvement and includes all labor, services,
and materials to be furnished and performed.
Employee legal authority - ANSWER -You must comply with the Federal
Immigration laws, which require employers to ensure that employees have legal
authority to work in the United States.
Additional penalty for unlicensed business - ANSWER -A person may be
prosecuted civilly and face fines of up to $100 per day for engaging in unlicensed
activity or aiding and abetting the operation of an unlicensed person or business.
Painting exterior of a house - ANSWER -You may require a suspended scaffold
and a rigging permit from DOB to paint the exterior of a home that is one story or
more, unless you can use a ladder to do the job.
Net profit of a job - ANSWER -Net profit is the final profit of any job after
expenses.
What is NOT home improvement - 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; Painting or decoration of a building,
residence, home, or apartment, when not related to home improvement work.
Difference between subcontractor and employee - ANSWER -A subcontractor is
an individual in business for himself or a firm in business for itself contracting to
do part of a home improvement contract with a prime contractor. An employee
works for wages and is under the employer's (prime or subcontractor) direct
supervision and control.
Consumer contract cancellation - ANSWER -Within 10 business days refund all
payments made under the contract, cancel and return money paid in connection
with the contract, terminate any security interest, and notify the consumer as to
whether the contractor intends to repossess or abandon any shipped delivered
materials.
Class One Self Hauler Registration - ANSWER -If you plan to haul or transport
waste resulting from your business operations, you must obtain a Class One Self
Hauler Registration from the New York City Business Integrity Commission.
