New York City has more licensed home improvement contractors than any US market — and more unlicensed ones. Hiring the wrong general contractor is the difference between a project that finishes on time and a stop-work order taped to your front door. Use this checklist before you sign anything.
1. Verify the license — don't accept a photo of a card
In NYC, home improvement contractors must hold a DCWP Home Improvement Contractor (HIC) license. General contractors doing DOB-permitted work also need a DOB General Contractor registration. Look both up yourself: DCWP's license search is public and free. If the license doesn't match the business name on the contract, walk away.
2. Confirm insurance in writing
- ·General liability: minimum $1M per occurrence, $2M aggregate.
- ·Workers' compensation: required for any employee working on the job.
- ·Disability insurance: required in New York State.
- ·Ask for a Certificate of Insurance (COI) naming you as additional insured — insurers issue these in a day.
3. Read the contract before it's a contract
New York's Home Improvement Business Law requires a written contract for any residential job over $200. It must include a scope of work, total price, payment schedule, start and completion dates, and a right-to-cancel notice. Deposits are capped at reasonable amounts — no contractor should demand 50% up front on a $100,000 job.
4. Ask who's actually doing the work
'General contractor' is a project management role. Ask which trades are in-house employees vs. subcontractors. In-house plumbing, electric, and HVAC means one crew, one warranty, and no finger-pointing when something breaks in month six. Heavy subbing is not disqualifying — but it changes how you should structure payment milestones.
5. Red flags that end the conversation
- ·Cash-only pricing or 'we save you the tax'.
- ·No physical NYC office address.
- ·Pressure to sign the same day or 'lock in this price'.
- ·Refuses to pull permits — this shifts DOB liability to you as the homeowner.
- ·No references from jobs completed in the last 12 months.
- ·Deposit demands over 30% of contract value.
Frequently asked questions
Do I need a licensed GC for a bathroom remodel in NYC?
Yes if the work touches plumbing, electrical, or the building envelope — which almost every bathroom does. Unlicensed work can void your homeowners policy and trigger a violation on the building.
How much deposit is normal for a NYC renovation?
10–25% at contract signing, then progress payments tied to milestones (rough-in complete, cabinets set, punch list). Never pay a large final balance before the punch list is closed.
Have a project like this?
ConstructionProX is a licensed, insured NYC general contractor covering all five boroughs. Free written estimates, in-house trades, and 24/7 emergency dispatch.