Fall and winter are when many families tackle a kitchen, bathroom or basement project. Before handing over a deposit, it pays to confirm that the contractor is operating legally. A license or registration is no guarantee of good work, but hiring an unlicensed contractor can cost you protections the law provides.
New York City: the Home Improvement Contractor license
According to DCWP, anyone doing home improvement work that costs more than $200 on a residential building in New York City must hold a Home Improvement Contractor license. That covers remodeling and repairs. It does not cover new home construction, plumbing or purely electrical work, which are handled by other licensed professionals.
To check a license, call 311 or search the DCWP license lookup. You can also call 311 and ask for a “Business Background Check” to see a company’s complaint history with DCWP. If the contractor also works outside the city, DCWP suggests checking with the consumer protection offices in Nassau, Suffolk and Westchester counties and with the New York State Department of State.
What NYC rules say about contracts and payments
- A written contract signed by you and the contractor, with a separate Notice of Cancellation form. You must get a signed copy before work starts.
- Your language. If you negotiated in Polish or another language, the contractor must give you the contract and the cancellation form in that language.
- A deposit of no more than 25% of the contract price. DCWP advises never paying in cash.
- Permits in writing. Before you sign, the contractor must tell you in writing which permits are needed, who will get them and how you can check their status.
- No contractor financing. Home improvement contractors may not arrange or offer home improvement loans; use your own bank or credit union.
The license also matters after the fact. If a DCWP-licensed contractor fails to finish the job or owes you money, you may be able to recover funds from the city’s Home Improvement Contractor Trust Fund: up to $40,000 through the standard process (which requires, for example, a court judgment or a breached settlement) or up to $20,000 through a simpler claim process after DCWP mediation that did not end in a settlement. Customers of unlicensed contractors are not eligible.
New Jersey: registration with the Division of Consumer Affairs
New Jersey requires home improvement contractors to register with the Division of Consumer Affairs. The Division says unregistered contractors will not be issued municipal construction permits and may not perform home improvement work in the state. You can check a registration through the state license verification system (use Business Search, since registrations are issued to the business) or by calling 1-800-242-5846.
Key points from the Division’s consumer brief, “Hiring Home Improvement Contractors”:
- Written contracts for jobs over $500, listing the contractor’s legal name and business address, registration number, start and completion dates, a description of the work and the total price. The contractor must also give you a copy of its liability insurance policy and the insurer’s phone number; the law requires coverage of at least $500,000 per occurrence.
- Three business days to cancel. You may cancel a signed contract for any reason before midnight of the third business day after you receive a copy. Do it in writing, delivered in person or by registered or certified mail.
- Final payment after completion. Contractors may not demand the final payment before the work is done, and final municipal inspections should be completed before you pay.
- Red flags: a demand for more than a third of the price before work begins, a demand for cash, no written contract, only a P.O. box address, no registration number, or a crew that shows up unasked, claiming to be “just in the neighborhood.”
Plumbers, electrical contractors and architects do not register as home improvement contractors. They are licensed separately by the state; the Division’s brief points consumers to its Licensee Search to confirm those licenses.
Where to complain
In New York City, contract and workmanship disputes can be reported by calling 311 or through DCWP’s website. In New Jersey, you can file online with the Division of Consumer Affairs, call 1-800-242-5846 or contact your county or municipal consumer affairs office.
Key takeaways
- New York City: a DCWP license is required for home improvement jobs over $200; check it by calling 311 or online.
- New Jersey: contractors must register with the Division of Consumer Affairs; check online or at 1-800-242-5846.
- Get everything in writing. In NYC, deposits are capped at 25%; in New Jersey, be wary of anyone asking for more than a third up front.
- Only customers of DCWP-licensed contractors can seek reimbursement from the DCWP Trust Fund.
Sources: DCWP tips for hiring a home improvement contractor (06/2026; also available in Polish, PDF), the Home Improvement Contractor Trust Fund page, the New Jersey Division of Consumer Affairs brief “Hiring Home Improvement Contractors” (revised Jan. 13, 2025, PDF) and the Contractors’ Registration Act (P.L.2004, c.155).
This article is for general information and is not legal advice.
Find Polish-speaking contractors in the general contractors section of the Polish Pages directory, and run the same license check before you sign.
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