NY Home Improvement Contractor Exam Studyguide

What is "home improvement" (H.I.)? (C R R R R A A I)

the construction, repair, remodeling, alteration, rehabilitation, renovation, improvement, or addition to any land or building used as a residence or dwelling place.

What parts of a home can a H.I. include?

Any part of the home OR land (including basements, driveways, fences, garages, landscaping, patios, porches, sidewalks, swimming pools, and terraces.)

What system installations are part of H.I.? (4)

Central heating/air conditioning, Central vacuum, Doors, windows, awnings, and Communication systems.

What is NOT considered H.I.?

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

When is Painting or decoration of a building, residence, home, or apartment considered H.I.?

When there is painting work being done as part of other home improvement work.

When is Painting or decoration of a building, residence, home, or apartment NOT considered H.I.?

When it is a standalone job not part of of other home improvement work.

Who is a "contractor"?

Anyone who owns, operates, maintains, conducts, controls, or transacts a home improvement business and undertakes or agrees to perform any home improvement.

What legal entity is a contractor required to be?

A contractor may be an individual, a firm, a company, a partnership, or a corporation.

What is a H.I. contract?

An agreement between a contractor and a consumer or tenant for performance of a home improvement

What must a H.I. contract detail?

All labor, services, and materials to be furnished and performed.

Who is a "salesperson"?

Someone who negotiates a H.I. contract with a consumer or tenant, or solicits a home improvement contract from an owner or tenant.

Who must have a DCA license?

Any person who solicits, canvasses, sells, performs, or obtains a H.I. contract as a contractor or salesperson must have a DCA license.

Does an individual employee of a contractor, who does not solicit or negotiate contracts, need to be licensed?

No

What is the maximum amount an H.I. job can be to not require a licensed contractor?

$200

Do plumbers and electricians who do not perform work outside their trade need a H.I. license?

No, they have their own trade licenses.

When would an architect or engineer involved with an H.I. project need a contractor's license?

If they are physically performing H.I. functions outside the scope of an architect or engineer.

Must a H.I. Contractor license be posted?

Yes, it must be posted in the Contractor's office where all consumers can see it, or show it to consumers upon request.

Change of business address, ownership, management, or trade name must be reported to DCA within how many days?

10 days

How many business locations can a H.I. Contractor's license cover?

One. A seperate license is required for each place of business.

When and how does a H.I. Contractor's license get renewed?

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.

May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the home owner (customer)?

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.

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?

Six (6) years or the length of time of any contractual guarantee, whichever is longer.

What percentage of a customers payments can a Contractor use for administrative, overhead, and other projects?

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.

No work should be performed and no money should be paid until after the ____ day cancellation period?

3 days

Can a H.I. Contractor arrange a home loan or a home improvement loan for a consumer?

No, nor can they act as an agent for, advertise, or promote loans.

Must a contractor furnish a consumer with a written estimate?

Yes, if the consumer requests one.

Can a Contractor charge a fee for an estimate?

Yes, but they must disclose the fee to the consumer before providing the estimate and must include and itemize the fee in the total estimated contract price.

What is the fine for false or fraudulent representation?

A contractor or salesperson who lies is subject to fines of up to $500 for each separate misrepresentation.

What becomes of the contract entered into after misrepresentations?

It may be declared null and void, and contractor may be ordered to pay restitution to the consumer.

What is the prosecution and fine penalties for operating a home improvement business without a license or with a suspended or revoked license?

Guilty of a misdemeanor and may be prosecuted criminally and subject to up to six (6) months imprisonment and/or $1,000 in fines.

What is the prosecution and fine penalties for engaging in unlicensed activity or aiding and abetting the operation of an unlicensed person or business?

civil prosecution and $100 day fine.

Can the DCA padlock (close down) and confiscate (take) the tools and trucks used in connection with unlicensed home improvement work?

Yes!

In what form must a home improvement contract be?

Every home improvement contract must be in writing and signed by everyone involved.

When must the consumer receive a completed, legible copy of the H.I. contract?

At the time of signing and before any work is done.

Does the H.I. contract have to be in englsh?

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.

If a consumer wants more work done beyond what's in the original contract, what should a contractor do?

Provide a written amendment to the contract, which both parties must sign.

What information should be at the heading of a H.I. contract?

contractor's name, office address, telephone number, and DCA license number and the salesperson's name and DCA license number.

What dates should be on the H.I. contract?

the contract date, approximate date when work will begin and date to be substantially completed.

What costs must be included in the H.I. contract?

labor and materials

What 3 notices must the H.I include?

If the owner does not pay the contractor they may have a claim against the owner, that the contractor is legally required to deposit all payments received prior to completion or the contractor must post a bond or contract of indemnity, and the cancellation notice wording.

What schedule should be inclduded with the H.I. contract?

Schedule of payments and the work/services to be performed if the contract calls for incremental payments.

Must a contractor or salesperson provide the consumer with a separate Notice of Cancellation?

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."

How much time does the home owner have to cancel the contract?

Until midnight of the third business day.

Must a contractor or salesperson inform the consumer orally of the consumer's right to cancel?

Yes, verbally and written notice.

What if a contractor or salesperson fails to comply with the provisions requiring oral (spoken) and written notice of the consumer's right to cancel?

The consumer may cancel the contract at any time.

How many days does a contractor or salesperson have to honor valid notice of cancellation?

10 business days

Do salespersons need to notify DCA about their employers?

Yes within 48 hours of new employment.

What must all advertising and sales literature contain?

DCA Home Improvement Contractor license number.

A "savings" claim in an adv ertisment cannot imply what?

The amount specified is the selling price.

What type of guarantees or warranties can be made?

Only as long as a defect is likely to show up.

What type of guarantees or warranties can NOT be made?

"lifetime" guarantees or warranties

Who must obtain building and improvement permits?

The prime contractor.

Where does a contractor go to secure a permit for an addition or alteration to a house?

The New York City Department of Buildings (DOB).

Whose responsibility is it to make sure that any addition or alterations meet building code standards and do not violate local zoning laws?

the H.I. Contractor

What is net profit of a job?

The final profit of any job after expenses.

Must a subcontractor be seperately licensed by DCA?

Yes, this includes electricians and plumbers.

How long can a contractor elect to secure a bond or participate in DCA's Home Improvement Trust Fund?

Every 2 years