Hiring a contractor in New York: check, red flags, complaints

Red flags when hiring

• No DCWP license for a NYC home improvement job over $200. (source: NYC DCWP: Quick tips when hiring a home improvement contractor (opens in a new tab))
• Asks for cash, or more than 25% of the price upfront. (source: NYC DCWP: Quick tips when hiring a home improvement contractor (opens in a new tab))
• Offers to arrange your financing. NYC home improvement contractors are not allowed to. (source: NYC DCWP: Quick tips when hiring a home improvement contractor (opens in a new tab))
• No written contract, or no 3-business-day cancellation notice. (source: NY Attorney General: Home Improvement Fact Sheet (opens in a new tab))
• Won't say where your deposit is held in escrow, or show a bond. (source: NY Attorney General: Home Improvement Fact Sheet (opens in a new tab))

Full checklist: how to check a contractor before you hire

Penalties under state contract law

• A customer can sue for actual damages plus a $500 penalty and attorneys' fees if the contractor used fraudulent written statements. (source: NY Attorney General: Home Improvement Fact Sheet (opens in a new tab))
• Contractors face $100 civil fines for breaking the Home Improvement Contract Law, and $250 to $2,500 for breaking the payment-protection rules. (source: NY Attorney General: Home Improvement Fact Sheet (opens in a new tab))

How to complain

• In NYC, call 311 or visit nyc.gov/dcwp. The Trust Fund may repay you if a DCWP-licensed contractor did not finish or owes you money. It does not cover unlicensed contractors. (source: NYC DCWP: Quick tips when hiring a home improvement contractor (opens in a new tab))
• Outside NYC: Nassau County Consumer Affairs (516) 571-2600, Suffolk County Consumer Affairs (631) 853-4600, Westchester Consumer Protection (914) 995-2155. (source: NYC311: Home Improvement Contractor License Check (opens in a new tab))
• NY Attorney General: 1-800-771-7755. (source: NY Attorney General: Home Improvement Fact Sheet (opens in a new tab))

More ways to check

• Call 311 and say "Business Background Check" to check DCWP complaint history. (source: NYC DCWP: Quick tips when hiring a home improvement contractor (opens in a new tab))

Consumer protections

Contract, cancellation and deposit

• Get a written contract. You have 3 business days to cancel it. (source: NY Attorney General: Home Improvement Fact Sheet (opens in a new tab))
• Your deposit must go into an escrow account within 5 business days, or the contractor must post a bond within 10 business days. (source: NY Attorney General: Home Improvement Fact Sheet (opens in a new tab))
• In NYC, the DCWP Trust Fund only covers work by licensed home improvement contractors. (source: NYC DCWP: Quick tips when hiring a home improvement contractor (opens in a new tab))