In New York City, any business or professional performing renovations, repairs, or home improvements valued at $200 or more must obtain a mandatory license. This requirement, designed to protect consumers and ensure quality standards in the construction industry, applies across all five boroughs: Manhattan, Queens, Brooklyn, the Bronx, and Staten Island. The license is issued by the Department of Consumer and Worker Protection (DCWP), the agency responsible for overseeing business and labor regulations in the city. For more information on the licensing process and specific requirements, interested parties can visit the DCWP’s official website: www.nyc.gov/dcwp.
In the counties surrounding New York City, the license must be obtained from the following departments:
Nassau County: Office of Consumer Affairs
Suffolk County: Suffolk County Department of Labor, Licensing & Consumer Affairs.
Westchester County: Department of Consumer Protection.
The primary goal of the Home Improvement license in New York is to regulate and protect both contractors and consumers, ensuring that renovation and remodeling work is carried out legally, safely, and professionally. If you plan to establish or expand a construction business in New York, obtaining this license is a crucial step toward ensuring the success and sustainability of your business.
Who is a "Contractor"?
A contractor is any individual who owns, operates, maintains, conducts, controls, or engages in a home improvement business and agrees to or undertakes such work, or solicits a home improvement contract—whether acting as a general contractor or a subcontractor. A contractor can be an individual, a company, a partnership, or a corporation.
What is a "Home Improvement Contract"?
A home improvement contract is an agreement, whether written or not, between the contractor and the homeowner or tenant for home improvement work. It includes all labor, services, and materials to be provided and delivered.
WHO IS REQUIRED TO OBTAIN A LICENSE?
Any individual or business that enters into contracts of $200 or more.
A person or business must have a Home Improvement Contractor License to:
Perform construction work
Make repairs
Conduct remodeling
Carry out other home improvements on any residential building or property in New York City
Other home improvement work includes, but is not limited to, the construction, replacement, or enhancement of:
Basements
Driveways
Fences
Garages
Landscaping/gardens
Patios
Porches
Sidewalks
Swimming pools
Decks and other improvements to structures or land adjacent to a house or apartment building
Examples:
Kitchen and bathroom remodeling
Installation of flooring, roofing, and siding
Interior and exterior painting
Installation of doors and windows
Construction of decks, patios, and fences
Minor plumbing and electrical work (excluding work requiring a specialized license)
Structural repairs and carpentry
If a home improvement contractor wants to perform minor plumbing or electrical work, they may do so as long as they do not alter main lines or structural systems. For more complex work, a specific plumbing or electrical license is required, and in some cases, it is necessary to work with a licensed professional in those fields.
WHY OBTAIN A LICENSE?
Obtaining a Home Improvement Contractor License in New York offers several key advantages for operating legally and competitively in the market. Here are some of the main benefits:
Benefits for Contractors
Legal Compliance – In many counties and cities in New York, a license is mandatory to perform home improvement work. Operating without one can result in fines and penalties.
Increased Credibility and Trust – Customers prefer to hire licensed professionals because it ensures compliance with legal and quality standards. This can lead to more potential clients.
Access to Larger and More Lucrative Projects – Many home improvement contracts, especially those from government agencies or large companies, require contractors to hold a valid license.
Legal Protection and Risk Reduction – Having a license allows contractors to access insurance and bonds, protecting both their business and clients in case of disputes, accidents, or contract breaches.
Easier Permit Acquisition – In many cases, a license is required to apply for building permits and comply with local regulations.
Competitive Advantage – Licensed contractors can stand out in the market, as clients often see this certification as a key factor when choosing a service provider.
Avoid Fines and Lawsuits – Working without a license can expose contractors to fines, business closure, and even lawsuits from dissatisfied clients or government authorities.
Search for Licensed Businesses
Payment of Fines and Fees
False or Fraudulent Statements
A contractor who provides false information may face civil penalties of up to $500 for each false statement. Additionally, any contract entered into after such false statements have been made may be declared null and void, and the contractor may be required to compensate the consumer.
Operating Without a License
Any individual who owns or operates a home improvement business without a license, or after the license has been suspended or revoked, is guilty of a misdemeanor and may face criminal prosecution, with penalties of up to six (6) months in jail or a fine of $1,000. Each violation is considered a separate offense. Furthermore, such individuals may also face civil penalties of up to $100 per day for engaging in unauthorized business activities, assisting an unlicensed individual or business, or being complicit in such operations. Lastly, the Department of Consumer and Worker Protection (DCWP) may shut down (close) the business and seize (confiscate) tools and vehicles used in unauthorized home improvement work.
Compliance with Local Regulations
The general contractor must obtain all necessary permits, licenses, certificates of occupancy, or exemptions required to complete the contract in accordance with state and local building laws.
Maintain copies of contracts, accounting books, and other records reflecting all transactions related to the home improvement business for six (6) years or for the duration of any contractual warranty, whichever is longer.
The home improvement contractor must use all funds received to pay expenses directly related to the home improvement project. The contractor may not use received funds for unrelated expenses unless the home improvement work has been completed and all costs for direct labor, materials, and subcontractors have been fully paid.
No work shall be performed, and no payments shall be made until after the three-day cancellation period has passed.
The Contractor MAY NOT!
Abandon or fail to perform the agreed-upon work.
Make any major fraudulent statements in the offer of a home improvement contract.
Commit fraud in the execution of a contract, mortgage, promissory note, or other documents related to the home improvement transaction.
Make any advertising that contains false, misleading, or confusing statements.
Violate building, sanitary, fire, and health laws.
Fail to notify the DCWP of any change in ownership (management), business name, or business location.
Conduct home improvement business under a name different from the business name or fictitious business name (DBA) listed on the license.
Act as a representative for a home loan or home improvement loan for the consumer, nor advertise, promote, or process it.
REQUIREMENTS:
Basic license application
Sales tax identification number or application confirmation number
Proof of business address
Proof of residential address
Workers’ compensation insurance information
Proof of certification from the U.S. Environmental Protection Agency (EPA) related to safe practices for working with lead or signed statement.
Registration with the DCWP Trust Fund ($200 fee) OR a copy of a $20,000 surety bond (or third-party bond), duly signed
Compliance agreement
Home improvement exam, with an exam fee of $50
Fingerprints and processing fee
Statement of authority to act (if applicable)
License fee
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