New York Homeowner-Contractor Agreement

Instructions — not part of the agreement

How to Use This Template

This template was built by jaspector.com to help New York homeowners protect themselves when hiring a contractor. It covers the key provisions required by New York General Business Law Article 36-A, including escrow requirements, cancellation rights, mechanics' lien protections, and local licensing considerations.

Before You Start

1. Verify the contractor's license. New York does not have a single statewide contractor license. Licensing is local. In New York City, verify the Home Improvement Contractor license through NYC DCWP. In Nassau, Suffolk, Westchester, Putnam, or Rockland counties, verify through the county's consumer affairs office. See our New York license lookup guide for step-by-step help.
2. Download and print this document. Fill in all blank fields — do not leave any section empty. New York law requires a completely filled-in, written contract signed by all parties.
3. Review each section carefully. Pay special attention to the New York-specific legal requirements woven throughout the contract — they explain your rights as a homeowner.
4. Both parties sign. You and the contractor each get a signed copy before any work starts.
5. Consult an attorney. This template is a starting point. For large projects or complex scopes, have a New York-licensed attorney review the agreement.

Field-by-Field Guide

• › Section 1 (Parties): Fill in the legal names exactly as they appear on official documents. Include the contractor's local license number and the licensing jurisdiction (e.g., NYC, Nassau County, etc.).
• › Section 2 (Scope): Be as specific as possible. "Kitchen remodel" is not enough — list materials (with make and model), dimensions, finishes, and what is excluded. New York law requires material descriptions.
• › Section 3 (Payment): New York requires the contractor to deposit pre-completion payments into a bank escrow account within five business days, or post a bond. Tie every payment to a completed milestone. For roofing contracts, no deposit is allowed before work begins.
• › Section 4 (Timeline): Get start and completion dates in writing. You must also specify whether a definite completion date is "of the essence." Fill in the delay penalties.
• › Section 7 (Warranties): Fill in the warranty period. One year is common; negotiate for more on major work.
• › Section 14 (Exhibits): Attach all plans, specs, the contractor's license printout, and insurance certificates. Check each box for what you are including.
• › Local licensing: New York City, Westchester, Nassau, Suffolk, Putnam, and Rockland counties all require home improvement contractor licenses. Many upstate municipalities have their own requirements. Always verify the contractor is licensed in the specific jurisdiction where the property is located.
• › Escrow requirement: Under GBL §771-a, contractors must deposit all pre-completion payments in a New York State bank escrow account within five business days, or post a surety bond or irrevocable letter of credit.
• › Three-day cancellation: You can cancel any home improvement contract until midnight of the third business day after signing (GBL §771(h)). The contractor must include this notice in the contract.
• › Roofing contracts: No deposit or payment may be required before work begins, except the roofer may invoice for materials upon delivery to the property.
• › Mechanics' liens: For single-family homes, a lien must be filed within four months of the last work performed. Request lien waivers with each payment.
• › Permits: The contractor should pull permits for licensed work. In New York City, the contractor must meet NYC Department of Buildings permit requirements. If a contractor asks the homeowner to pull the permit, that is a red flag.
• › NYC trust fund / bond: Licensed Home Improvement Contractors in New York City must either enroll in the DCWP Trust Fund or file a $20,000 surety bond with DCWP. If your property is in NYC, ask the contractor to confirm their trust fund enrollment or bond status.
• › Consumer complaints: In NYC, file complaints with DCWP at nyc.gov/consumers or call 311. Statewide, file with the NY Attorney General at ag.ny.gov. You can also contact your county's consumer affairs office.

About Jaspector

Jaspector is an AI-powered property advisory service that helps homeowners navigate construction projects, verify contractors, and resolve disputes. If a dispute arises during your project, we can help you document the issue and build a resolution strategy.

Learn more at jaspector.com — or email hi@jaspector.com to get started.

The instructions above are provided by jaspector.com as an educational resource. They are not part of the agreement, do not constitute legal advice, and do not create an attorney-client or endorsement relationship.

Homeowner (Property Owner)

Contractor

2.1 Project Description

Describe the work in specific, measurable detail. Include materials, methods, dimensions, and reference any plans, drawings, or specifications attached as exhibits.

2.2 Work NOT Included

Explicitly list work excluded from this contract to prevent scope disputes.

2.3 Permits and Inspections

• Contractor is responsible for obtaining all required building permits
• Contractor is responsible for scheduling all required inspections
• Permit costs are: Included in contract price / Billed separately at cost

2.4 Plans and Specifications

• Attached as Exhibit A (architectural / engineering plans)
• Attached as Exhibit B (material specifications)
• No formal plans — scope defined by Section 2.1 above

3.1 Total Contract Price

3.2 Payment Schedule

3.3 Payment Terms

• ›Payments are due within days of written invoice
• ›Acceptable payment methods:
• ›No payment shall be due for work not yet performed or materials not yet delivered to the job site
• ›Final payment is due only after: (a) all work is complete, (b) final inspection is passed (if applicable), and (c) Homeowner has had reasonable opportunity to inspect

4.1 Delays

• ›Contractor shall notify Homeowner in writing within 48 hours of any event that may delay the project
• ›Excusable delays include: weather, permit delays, material shortages, acts of God, government orders
• ›Non-excusable delays exceeding business days entitle Homeowner to a daily credit of $
• ›If the project is not substantially complete within days of the estimated completion date (excluding excusable delays), Homeowner may terminate under Section 9

Any changes to the scope, price, or timeline of this contract must be documented in a written Change Order signed by both parties before the changed work begins.

Each Change Order shall include:

1. Description of the changed work
2. Addition to or deduction from the contract price
3. Impact on the project timeline
4. Signature of both Homeowner and Contractor

No verbal agreements will modify this contract.

6.1 Materials

• ›All materials shall be new unless otherwise specified in writing
• ›Substitutions require prior written approval from Homeowner
• ›Contractor warrants that all materials comply with applicable building codes

6.2 Workmanship Standards

• ›All work shall be performed in a professional, workmanlike manner
• ›All work shall comply with applicable New York State building codes and local ordinances
• ›All work shall conform to the plans, specifications, and scope described in this contract
• ›Contractor shall maintain a clean and safe job site

6.3 Subcontractors

• ›Contractor use subcontractors (will / will not)
• ›If subcontractors are used, Contractor remains fully responsible for their work, licensing, and insurance
• ›All subcontractors performing work that requires a local license must hold a valid, active license
• ›Homeowner may request local license numbers for any subcontractor working on the project

7.1 Contractor Warranty

Contractor warrants all labor and workmanship for a period of year(s) from the date of completion. During this period, Contractor shall repair or correct, at Contractor's expense, any defects in workmanship or materials furnished by Contractor.

7.2 Manufacturer Warranties

Contractor shall provide Homeowner with all manufacturer warranties for materials and equipment installed. Contractor shall ensure installations comply with manufacturer specifications to preserve warranty coverage.

7.3 Warranty Exclusions

• ›Normal wear and tear
• ›Damage caused by Homeowner negligence or misuse
• ›Damage caused by third parties or acts of God
• ›Items specifically excluded in writing

8.1 Contractor Insurance Requirements

• ›Contractor shall provide certificates of insurance upon request
• ›Homeowner shall be named as additional insured on the general liability policy

9.1 Homeowner's Right to Terminate

• ›Homeowner may terminate this contract at any time by providing written notice
• ›Homeowner shall pay for all work satisfactorily completed and materials delivered as of the termination date
• ›Contractor shall provide an itemized accounting within 10 business days of termination
• ›Contractor shall not charge a cancellation penalty exceeding actual costs reasonably incurred

9.2 Contractor's Right to Terminate

• ›Homeowner fails to make a payment within days of written notice of default
• ›Conditions at the job site make the work unsafe or illegal to continue

10.1 Informal Resolution

The parties agree to attempt informal resolution of any dispute by written notice describing the issue. The other party shall respond in writing within 15 business days.

10.2 Mediation

If informal resolution fails, the parties agree to submit the dispute to non-binding mediation before a mutually agreed mediator. Mediation costs shall be shared equally.

10.3 Consumer Complaints

10.4 Legal Action

If mediation fails, either party may pursue legal action in the county where the property is located. The prevailing party shall be entitled to recover reasonable attorney's fees and costs.

11.1 Protecting Against Mechanics' Liens

11.2 Lien Filing Deadlines

Under New York Lien Law:

12.1 Contract Requirements Under GBL §771

New York law requires that home improvement contracts include:

12.2 Notice to Owner

12.3 Escrow Disclosure

The contractor is required by New York law to deposit all payments received prior to substantial completion into an escrow account at a bank located in New York State within five (5) business days, or to post a surety bond, contract of indemnity, or irrevocable letter of credit guaranteeing the return or proper application of such payments. The contractor must notify the owner in writing of the name of the depositary within ten (10) business days. — GBL §771-a

12.4 Local Licensing Statement

• ›Entire Agreement: This contract, including all exhibits and change orders, constitutes the entire agreement. No prior verbal or written representations shall be binding unless incorporated herein.
• ›Severability: If any provision is found unenforceable, the remaining provisions continue in full force.
• ›Governing Law: This contract shall be governed by the laws of the State of New York.
• ›Notice: All notices shall be in writing and delivered to the addresses in Section 1, by personal delivery, certified mail, or email with confirmed receipt.
• ›Assignment: Neither party may assign this contract without prior written consent of the other party.

• Exhibit A: Plans and Drawings
• Exhibit B: Material Specifications
• Exhibit C: Notice of Three-Day Right to Cancel
• Exhibit D: Contractor's License Verification Printout (from applicable local agency)
• Exhibit E: Certificates of Insurance
• Exhibit F: Escrow Account Disclosure
• Additional: _________________________________

Signatures

By signing below, both parties acknowledge that they have read, understand, and agree to all terms of this contract.