DCA vigorously enforces City rules that protect consumers stuck with unfinished, shoddy work by home improvement contractors (HICs). The number one targets of complaints received at DCA are HICs who renege on their contracts, or work without a license.

When DCA discovers an unlicensed home improvement business, the agency takes possession of contractors' vehicles. The HICs are required to pay a fine, resolve any outstanding complaints, and agree to get licensed before retrieving their vehicles.

By law, any person or business that solicits, canvasses, sells, performs, or obtains home improvement work that costs more than $200 must get a license from DCA to operate legally in New York City. Home improvement work can be any type of remodeling or repair including: awnings, basements, central heating/air conditioning, cabinet installation, central vacuum cleaning system, communications systems, driveways, fences, garages, patios, porches, roofing, storm windows, swimming pools, and terraces. Landscaping is also considered home improvement, with proper planting and installation of lawn sprinklers as examples of common work.

Although a license does not ensure competence, requirements for contractors to operate legally provide further protection for consumers. Licensed contractors must undergo a criminal history check, pass a written examination on their knowledge of the law and contracts, and contribute $200 to the Home Improvement Contractor Trust Fund at the time of application and each time they renew, or post a bond. DCA's Home Improvement Trust Fund reimburses homeowners – up to a maximum of $15,000 – who hired a licensed contractor who subsequently damaged their home and went out of business or left town.

A license also provides benefits for contractors, allowing them to pay into the Trust Fund and, therefore, saving the expense of obtaining a bond. In addition, licensed contractors have greater recourse to defend themselves from false claims or when a client refuses to pay when the job is done.

Bottom line:

Always use a licensed home improvement contractor and/or salesperson. Check with your local consumer protection agency to learn if a contractor is licensed. In New York City call 311 or use DCA's Instant License Check.

Get reliable references. Check with at least three reputable references before hiring a contractor. Call 311 for complaint histories with DCA. Also check with consumer protection agencies in Nassau, Suffolk, Westchester, and other counties for complaints:
Nassau County Office of Consumer Affairs
Suffolk County Office of Consumer Affairs
Westchester County Department of Consumer Protection
New York State Consumer Protection Board