New York Contractor License Search

Who Is a Contractor in New York?

Contractors are individuals or businesses that provide agreed-on services per the terms of a contract, which may be written or oral. Typically, New York contractors provide services that include but are not limited to constructing, repairing, or remodeling residential and commercial buildings and installing or repairing systems. These contractors are primarily licensed and regulated at the municipal level by local agencies - like the NYC Department of Consumer and Worker Protection and the Buffalo Department of Permit and Inspection Services (for contractors in New York City and Buffalo, respectively). However, asbestos contractors, crane operators, blasters, and pyrotechnicians must be licensed and certified by the New York State Department of Labor – the same goes for elevator contractors. Contractors looking to provide home improvement services worth $500 or more must also follow specific state-mandated regulations and their respective local regulatory requirements.

New York groups contractors into the following categories:

• General Contractors: these contractors typically manage and supervise construction and home improvement projects on behalf of the project owner. They may also perform construction work (excluding tasks requiring specialized skill and licensing, like electrical, plumbing, and HVACR work). General contractors are often sub-grouped into three classes based on their areas of specialization:
  • Residential/Home Improvement Contractors: contractors who construct, remodel, or repair residential property. Licensing for this class of contractors is mandatory in New York City and Suffolk, Nassau, Westchester, Putnam, and Rockland counties.
  • Commercial Contractors: these contractors construct, renovate, and repair commercial property.
  • Industrial Contractors: these contractors focus on buildings and properties used for industrial purposes, like power plants and factories.
• Specialty Contractors: these contractors provide specific building and construction-related services that often require specialized skill and training, like carpentry, masonry, flooring, painting, door and window installation, plumbing, and electrical work. Specialty contractors like electricians, plumbers, and HVAC contractors typically require occupation-specific licenses to ply their trade in New York. While individual municipalities determine the licensing requirement for these specialty contractors in their respective jurisdictions, the licensing process usually involves the contractor demonstrating their competence through written and practical examinations.
• Subcontractors: these are specialty contractors that a general contractor hires to complete particular tasks on a bigger project. Subcontractors typically have no contact with the project owner and deal directly with the general contractor who hired them.

How to Search for a Contractor's License in New York

Contractor licensing in New York is mainly handled locally by cities and counties; however, professionals like elevator contractors, asbestos contractors, and crane operators are regulated at the state level and licensed by the New York State Department of Labor (DOL). You can use the Uhire Professional License Search tool to verify whether your prospective contractors have been appropriately licensed (and registered) to operate in your city or county – this tool lets you conduct name, license number, and location-based searches for these contractors.

Alternatively, you can contact your local building department or consumer protection agency to confirm whether your contractor has complied with all necessary regulatory requirements for contracting in your locality. Finally, you can also check state-issued licenses by contacting the DOL at (518) 457-9000 and (888) 469-7365.

Penalty for Hiring a Contractor Without a License in New York

No specific penalties are stated for hiring unlicensed contractors in New York, whether at the state or municipal level. However, failing to confirm that your prospective contractor is appropriately licensed or knowingly hiring an unlicensed contractor has several drawbacks:

• Unlicensed contractors typically do not carry insurance or bonding. This means that you could be held responsible for any injuries or property damage during the project, as well as if the contractor fails to fulfill the terms of your contract.
• By hiring an unlicensed contractor, you risk engaging someone lacking the required skills and experience for the job, resulting in unsatisfactory services and potential safety hazards.
• Only licensed contractors can obtain permits from local building departments. Undertaking projects without obtaining these permits can lead to fines, administrative sanctions imposed by local authorities, and even a potential decrease in your property's value.

Note that non-compliance with local licensing requirements is considered unlawful – penalties for this are determined by individual municipalities and the nature of the offense. For example, performing plumbing, HVAC, or electrical work in NYC is punishable by fines of up to $25,000 and imprisonment of up to one year. Similarly, providing construction or home improvement services in Buffalo without a valid city-issued contractor's license is considered an unclassified misdemeanor, punishable by a fine of up to $1,000 and imprisonment of up to 60 days.

How Much Does a Contractor Charge in New York?

Specialty contractors in New York charge average hourly rates of $45 - $120 for their services. Note that the precise cost of engaging these professionals depends on variables like the type of contractor, the nature and scope of your required services, and the labor intensity of the project.

The table below lists the typical hourly rates for several types of specialty contractors in New York; however, you should keep in mind that these costs may change depending on your location and the contractor's local reputation:

Electricians

$80 - $125

Plumbers

$80 - $125

HVACR Technicians

$70 - $120

Carpenters

$50 - $85

Painters

$45 - $80

Roofers

$60 - $105

Flooring Contractors

$45 - $85

Masons

$55 - $90

Landscapers

$50 - $95

Architects

$85 - $200

Interior Designers

$70 - $150

Excavation Contractors

$70 - $180

Concrete Contractors

$55 - $90

Handymen

$45 - $90

Appliance Repair Technicians

$45 - $90

Exterminators

$50 - $110

Cleaning Services

$45 - $100

Movers

$50 - $175

Hiring a general contractor to manage your construction or home improvement project saves you the time and stress of managing several specialty contractors and dealing with laborers and vendors. General contractors in New York typically charge clients 10 – 20 percent of the project's total cost (this percentage may be higher for large projects) and use two standard pricing methods for estimating these fees:

• Lump Sum Pricing: here, the contractor provides all agreed-on services for a fixed price (a markup is factored into this price to account for unforeseen situations). This method is preferable for projects with well-defined scopes.
• Cost Plus Pricing: here, you pay for the actual cost of labor and materials, plus a predetermined amount to the contractor as their fees. This approach is ideal for projects with uncertain scopes, as it saves you money if the project costs less than estimated. However, setting a maximum price cap is advisable to prevent costs from skyrocketing in scenarios where the project goes on longer than expected.

Construction and home improvement projects in New York typically cost an average of $100 - $300 per square foot, with overall costs depending on factors like

• The project's scope,
• The experience of involved contractors,
• Contractor costs,
• Labor and materials costs,
• Your location,
• Site accessibility and conditions,
• Permit costs and other miscellaneous expenses.

Tips for Hiring a Contractor in New York

Construction and home improvement projects are usually quite expensive – residents and property owners in the Tri-State area alone are estimated to spend over $1 billion on these projects yearly. Thus, ensuring that the contractors you hire are aptly qualified for the job is crucial. Here are tips to help you select competent contractors in New York:

• Get a clear idea of the project's scope before hiring.
• Be wary of unsolicited contractors.
• Do not hire the first contractor you come across. Always compare quotes from at least two or three contractors.
• Request references from your preferred contractors and check them.
• Contact your local consumer protection agency or building department to determine the necessary licensing requirements for contractors in your municipality and confirm that the contractor has complied with them. Note that you require a locally-issued license for providing home improvement services in New York City and Buffalo, as well as Suffolk, Nassau, Westchester, Putnam, and Rockland counties.
• Insist on a well-detailed contract. Per state law, written contracts that include the contractor's name and contact details, a description of the job, and its estimated timeline are mandatory for home improvement projects worth more than $500.
• Carefully review any documents you are asked to sign before doing so.
• Always request proof of insurance and bonding.
• Never pay the total cost of the project upfront. Advance payments should also be limited to 10 – 30 percent of the project's total cost. Note that contractors undertaking home improvement projects worth more than $500 must deposit any payment they receive in an escrow account. These funds must only be withdrawn per the contract terms or after the project has been substantially completed.
• Avoid cash payments.

Is Your Contractor Insured and Bonded as Required by New York Statutes?

Excluding state-mandated workers' compensation insurance (required for all employers in New York), the insurance and bond requirements for contractors in New York are determined by respective municipalities and the contractor's intended scope of services. For example, general contractors in NYC must have general liability insurance of at least $1,000,000 per occurrence and carry disability insurance (or get an exemption, where applicable). Similarly, HVAC contractors in Buffalo must post and maintain a $10,000 bond before operating in the city.

Confirming prospective contractors' insurance and bond status before committing to them protects you financially and legally from liabilities like work-related accidents, injuries, and contractor errors. Insurance and bonds serve similar but distinct purposes – insurance covers the cost of bodily injuries, property damage, and contractor errors. In contrast, bonds protect you from losses if the contractor fails to deliver your required services per the terms of your contract.

As such, before hiring, always request copies of your preferred contractors' insurance and bond certificates (and validate these documents with the appropriate issuers). Confirm that the contractors' coverage limits will be adequate for your project when validating their coverage. It is also a good idea to contact your local building department to determine the mandatory insurance and bond requirements for contractors in your municipality – this can help you ascertain whether your contractor has complied with them.

Top Home Improvement Scams in New York

Issues involving deceitful contractors and subpar home improvement services have consistently ranked among New Yorkers' top ten complaint categories – the state's Attorney General's Office alone received more than 1,200 of these complaints in 2022. Some common deceptive tactics used by contractors to scam unsuspecting homeowners include:

• Misrepresenting the value added by their home improvement service,
• Exaggerating the need for a particular home repair,
• Falsely claiming to offer discounts while charging more than the market price,
• Downplaying the importance of written contracts or adding hidden charges and malicious terms to these contracts,
• Convincing the homeowner to pay in total upfront or make a sizeable down payment and then absconding after performing a shoddy job or without doing any work,
• Misrepresenting their licensing status.

You can avoid falling victim to these scams by taking the following precautions when planning your home improvement or repair projects:

• Be wary of unsolicited home improvement contractors
• Get and compare quotes for your required services from several contractors
• Always confirm that your intended contractor is appropriately licensed to operate in your municipality
• Insist on getting a well-detailed contract. Review this contract carefully before signing; ensure you understand it clearly and do not contain any blank spaces that can be filled in later.
• Never pay the total cost of your project upfront, and do not hire contractors that suggest this. Limit this to 10 – 30 percent of the project's cost if you have to make a down payment.
• Avoid cash payments.
• Always trust your gut. If you have misgivings about a contractor, you should strongly consider seeking a different one.