Renovating in New York City: How to Hire the Right Contractor

In most of the country, a renovation involves you, your contractor and a permit office. In New York City, the list is longer. A kitchen remodel in a co-op might need sign-off from the city's Department of Buildings, the building's board and managing agent, an asbestos investigator and, if the building is landmarked, the Landmarks Preservation Commission. The right contractor knows how to move a project through all of these. The wrong one can leave you with a half-finished apartment and a stop-work order.

This guide is organized around those gatekeepers: who licenses the contractor, who approves the work, and what New York law says about your contract and your money. When you start comparing companies, you can browse home renovation services in New York City and use this as your checklist.

Gatekeeper 1: The contractor's DCWP license

New York City requires a Home Improvement Contractor license from the Department of Consumer and Worker Protection (DCWP) for anyone doing construction, repair, remodeling or other home improvement work that costs more than $200 on a residential property in the five boroughs. New home construction, plumbing and purely electrical work are handled separately and are not covered by this license.

Before you get serious with any contractor:

• Ask for the DCWP license number and check it by calling 311 or using DCWP's online license lookup. DCWP's tips for hiring a home improvement contractor explain how.
• Check complaint history by calling 311 and asking for a "Business Background Check."
• Understand what you lose with an unlicensed contractor. If a licensed contractor owes you money or does not finish the job, you may be eligible for repayment through DCWP's Home Improvement Contractor Trust Fund. That option is not available if you hire an unlicensed contractor.

Licensed trades: plumbing and electrical

Plumbing and electrical work in the city are licensed by the Department of Buildings (DOB), not DCWP. Electrical installations and modifications require a permit and a Licensed Master Electrician, and plumbing work must be done by a Licensed Master Plumber, even some ordinary plumbing that does not need a permit. Ask your general contractor which licensed plumber and electrician they use, and look them up in DOB's Know Your Construction Professional directory, which also shows disciplinary records. If you need to hire one directly, our guides on choosing a plumber and choosing an electrician can help.

Gatekeeper 2: The Department of Buildings

Not every project needs a DOB permit. The city treats minor alterations and ordinary repairs as exempt, and DOB lists examples such as painting, plastering, installing new cabinets, resurfacing floors, replacing plumbing fixtures and non-structural roof repairs. Exempt work still has to follow the code, and some of it, like plumbing, still requires a licensed tradesperson.

Once the work goes further, such as removing or cutting into load-bearing or fire-rated walls, changing exits, moving plumbing lines or adding electrical circuits, you are in permit territory. For permitted alterations, a registered design professional (a licensed architect or engineer) typically prepares and files the plans with DOB through its online system, DOB NOW. Your contractor then works under that permit.

Two DOB-related items catch many owners by surprise:

• Asbestos first. Before DOB issues a construction permit, the work area must be inspected by an asbestos investigator certified by the Department of Environmental Protection, who documents the results. If asbestos will be disturbed, it has to be removed before the permit is issued. Build this into your timeline.
• Work hours. Standard permitted construction hours are weekdays from 7 a.m. to 6 p.m. Work outside those hours generally needs an after-hours variance. Many buildings set even tighter hours of their own.

Gatekeeper 3: Your co-op or condo board

If you live in a co-op or condo, your building will almost certainly have its own approval process, usually built around an alteration agreement between you and the building. Requirements vary from building to building, but alteration agreements commonly cover:

• Review of your plans by the building's architect or engineer, often at your expense.
• Insurance certificates from your contractor and subcontractors, naming the building and its managing agent.
• Permitted work days and hours, use of the service elevator and protection of hallways.
• Deposits held by the building to cover possible damage.
• Rules for work over another apartment, especially "wet" areas like kitchens and bathrooms.

Ask your managing agent for the alteration agreement before you request bids, and give a copy to every contractor you interview. A contractor who regularly works in co-ops and condos will ask for it before quoting, and will know that the board's timeline can be as long as the city's.

Gatekeeper 4: The Landmarks Preservation Commission

Many New York City buildings are individual landmarks or sit inside a designated historic district. If yours does, the Landmarks Preservation Commission (LPC) may need to approve your work. That includes exterior changes such as windows, and also interior work that requires a DOB permit, even when it does not change any protected features. For interior-only work, LPC often issues a Certificate of No Effect. The commission's website explains the permit types and how to apply.

Ask contractors whether they have worked on landmarked properties, and which approvals they expect your project to need.

The rules for your contract and your money

New York State's home improvement law applies to most home improvements costing more than $500, including work bought by co-op owners and tenants. According to the New York Attorney General, the law gives you these protections:

• A written contract before work starts, with the contractor's name, address and phone number, approximate start and finish dates, a detailed description of the work and materials (including brands and model numbers), and the price.
• A right to cancel until midnight of the third business day after you sign. Cancellation must be in writing.
• Protection for your deposit. Payments made before the work is finished must be placed in a trust account at a New York bank within five business days, unless the contractor provides a bond or similar guarantee instead. You must be told where the money is held.
• A reasonable payment schedule that relates to the work done and costs incurred.

DCWP adds city-level guidance. Before you sign, the contractor must give you written notice of all required permits, including who will get them and how you can check their status. DCWP also recommends paying no more than 25 percent of the contract total up front, never paying in cash, and keeping copies of every document and payment.

Older buildings: lead paint

Much of the city's housing was built before 1978. Under federal rules, contractors paid to do work that disturbs paint in pre-1978 housing must be lead-safe certified by the EPA, and they must give you EPA's "Renovate Right" pamphlet before starting. Ask to see the firm's certification, especially if children live in or visit the home.

Order of operations for a typical NYC renovation

1. Get your building's alteration agreement and confirm whether the building is landmarked.
2. Collect bids only from contractors with an active DCWP license.
3. Hire an architect or engineer if the work will need DOB permits.
4. Schedule the asbestos inspection early.
5. Submit plans to the board and, if needed, to LPC, then file with DOB.
6. Sign a contract that meets state law, with a deposit held in trust or bonded.
7. Start work only after permits are issued and the board has signed off.

Find a contractor in New York City

Browse home renovation contractors in New York City, read customer reviews, and check each company's DCWP license before you request a bid. You can also find architects, plumbers, electricians and other local services on the New York City page.