NYC home improvement contract checklist: what to get in writing
What to insist on before you sign a renovation contract in New York City, including the three-business-day cancellation right and how to structure payments.
A written contract is the difference between a dispute you can resolve and one you can only argue about. New York City and New York State both regulate home improvement contracts, and the City's Department of Consumer and Worker Protection (DCWP) publishes a model contract and cancellation notice for licensed contractors. This checklist explains what to look for. It is general information, not legal advice.
Start with a license check
Before reading a word of the contract, confirm the contractor’s DCWP license is active (see our license guide). Make sure the business name and license number on the contract match the record. Ask that the license number be written on the contract itself so it is in front of you if you need to file a complaint later.
What the contract should say
DCWP’s consumer advice is to insist on a written contract that includes four things: a description of the work to be completed, a timeline, the price and a payment schedule. In practice that means:
- A specific scope of work. Name the rooms, materials, brands, model numbers, colours and finishes. “Renovate kitchen” is not a scope. “Remove existing cabinets and countertop, install the 12 base and 8 wall cabinets listed in Schedule A” is.
- Start and completion dates. Ask what happens if the job runs late and who is responsible when the delay is caused by weather, permits or material shortages.
- The total price and how it can change. Any change order should be written, signed by both sides and priced before the extra work begins.
- Permits. Who applies for them and who pays. Work that needs a Department of Buildings permit should not start before it is issued. See our permits guide.
- Who does the trade work. Plumbing and electrical work must be done by licensed trades; the contract should say who they are.
- Cleanup, debris removal and protection of your property.
- Warranty terms in writing, including who to call and how long each part is covered.
Your right to cancel
The Administrative Code (section 20-394.1) gives the owner the right to cancel a home improvement contract until midnight of the third business day after signing, or after receiving the cancellation notice, whichever is later. The contractor must give you a separate, completed notice of cancellation in duplicate when you sign, and DCWP’s model form contains the statement “You may cancel this transaction, without any penalty or obligation, within three business days from the above date.” The main exception is genuine emergency repairs that you asked for and for which you signed a waiver. If a contractor does not give you the notice, keep that fact in your records. Download the City’s model contract and notice of cancellation as a comparison.
How to pay
DCWP’s guidance is never to pay the full price up front. Ask for a payment schedule tied to completion of stages of the job, so that money follows work already done. Pay by check or card rather than cash so there is a record, and get a signed receipt for each payment. Keep the final payment until the work is finished, inspected where an inspection is required, and you are satisfied. If you finance the work with a loan, read the loan terms separately from the contract.
Keep a paper trail
- Photograph the space before, during and after.
- Keep all quotes, contracts, change orders, receipts and messages.
- Note the names of anyone who works in your home and the days they attend.
- Ask for lien waivers or proof that subcontractors and suppliers have been paid, so that they cannot pursue the property if the contractor fails to pay them.
Things that should make you pause
- A contractor who says a license or permit isn’t needed.
- A quote that is verbal only, or a contract that is left blank in places.
- A request for a large deposit before any materials are ordered.
- Pressure to sign immediately “because the price expires today.”
The New York State Attorney General also publishes guidance on contractors and home maintenance and explains State-level protections. If something goes wrong, see our guide to the trust fund and complaints.