Need a Home Services / Remodeling Contract in New York? AroundWire Can Help

In New York, contracts for home services and remodeling are subject to several state and local requirements designed to protect both homeowners and contractors. Written contracts are mandatory for most residential projects over $500, and must clearly detail the scope of work, materials, start and completion dates, payment schedule, and a notice of the homeowner’s right to cancel within three business days (as per the New York Home Improvement Law, General Business Law Article 36-A). Contractors must hold a valid Home Improvement Contractor license, which is required in New York City and many counties; proof of licensing should be included or referenced in the contract. Liability insurance and, where applicable, workers’ compensation coverage are standard obligations, and evidence of these policies is often requested by clients. Payment terms typically involve a modest initial deposit (often limited by local law, such as no more than 10% or $1,000 in NYC) with progress payments tied to project milestones. Contracts often specify that final payment is due upon satisfactory completion and inspection. Dispute resolution clauses frequently favor mediation or arbitration before litigation, reflecting local court preferences. Common risk factors addressed in contracts include change order procedures, delays due to unforeseen conditions, and warranty terms (usually one year minimum). Compliance with building codes and permit requirements is essential, with failure to secure proper permits potentially voiding the contract or exposing both parties to penalties.