What a New York Home Improvement Contract Must Include

New York’s home improvement law (General Business Law § 771) requires a written contract for most home improvement jobs. The Attorney General notes it covers most improvements costing more than $500. The contract must be legible, in plain English, signed by you and the contractor, and you must get a copy before any work begins.

Checklist: what the contract must include

• The contractor’s name, address, phone number and license number
• Approximate start and substantial-completion dates, and anything that could change them
• A description of the work and materials, including brand, model or other identifying details, and the agreed price
• A payment schedule, if there are progress payments, listing each payment in dollars and cents and the stage of work it covers
• A notice about mechanic’s liens: unpaid subcontractors or suppliers may be able to file a claim against your property
• A notice about how your deposit is protected (escrow or bond, see below)
• A notice of your right to cancel within three business days
• Before work starts, details of the contractor’s insurance covering the work, including the insurer’s address and phone number

Your 3-day right to cancel

You can cancel until midnight of the third business day after you sign. Cancel in writing; a mailed notice counts once it is properly addressed and posted. The main exception is a genuine emergency repair that you requested and for which you signed a separate handwritten waiver.

How your deposit must be handled

Money you pay before the job is substantially complete must be protected. The contractor either deposits it in an escrow (trust) account at a New York bank within five business days and tells you where it is held within ten business days, or provides a bond or similar guarantee instead. The Attorney General advises not to hire a contractor who won’t do either.

Payment tips

• Keep the deposit modest and tie each later payment to finished work.
• Hold the final payment until the work is done and required inspections are passed.
• Put every change in writing, signed by both of you.

This guide summarizes the law for homeowners and is not legal advice.