Contract Compliance Check List
We would like to take this opportunity to inform consumers of a new Law recently passed
by the State of New York concerning Remodeling and Home Improvement Contracts.
A written contract, complying with the following checklist is required if the
cost of the job, including all labor, services and materials to be supplied by
the contractor is more than $500.00. Multiple contracts between the same
parties, each under the $500.00 threshold are prohibited.
For your protection, make sure that each of the following is covered in a Remodeling or
Home Improvement Contract entered into after March 1, 1988.
- Name, address and telephone number of the contractor and license number, if
applicable, of the contractor.
- Contract must be legible and written in plain English.
- Approximate or estimated date when the work will begin and when the work will be
substantially completed, including a statement of contingencies that could
materially change the completion date.
- Statement whether or not time is of the essence of the completion date.
- Specific description of the work to be performed and the materials to be provided to the
owner, including make, model number of any other identifying information.
- Consideration for the work and materials provided by the contractor must be specified (this
means a specific cost or rate).
- Notification of the Lien laws.
- Notice that the contractor will use an escrow account or post bond for down payment
advances on payments received prior to substantial completion and notice of a
depository for escrow amounts.
- Notice of right of cancellation, including a cancellation form.
- Clear description of any other document incorporated in the contract.
- Signature of contractor, and signature of the owner and any other party to the contract.
- A copy of contract signed by contractor is furnished to the owner before any work
- Any amendments to the contract also must be in writing and signed by both parties.
- A notice of the exclusion of unincorporated documents.