Get Quotes from Top General Contractor in New York City, NY

Are You Licensed to Practice as a General Contractor in New York City?

Article 418 of the New York City Administrative Code makes it unlawful for any individuals to refer to themselves or conduct business as general contractors in the city without being registered by the NYC Department of Buildings (DOB). Parties that violate this law can face city-imposed civil and criminal penalties, including fines of up to $25,000.

General contractor registration with the NYC Department of Buildings can be completed online via its DOB: NOW platform, and the department provides a user guide that applicants can use to get step-by-step directions on navigating the platform and submitting their applications. Applicants are expected to meet the following eligibility criteria before applying for registration as general contractors with the DOB:

• They must be at least 18 years old
• They must be able to read and write in English
• They must be of good moral standing

Applicants are typically also required to undergo a background investigation, which involves submitting the following documentation to the DOB:

• A notarized LIC6: General Contractor Registration Form
• A LIC50 or LIC51 form. Note that the former is mandatory for applicants who reside outside the city's five boroughs, while the latter is voluntary for applicants who reside within the city.
• A Child Support Certification Form
• A notarized Supplemental Investigation Questionnaire
• A notarized letter on a company letterhead stating the contact details, social security number, and ownership percentage of all corporate officers, partners, and other stakeholders in the applicant's contracting business
• Proof of tax registration with the IRS
• Proof of a minimum bank account balance of at least $25,000 for the past three months
• Proof of compliance with the department's mandatory insurance requirements
• A valid government-issued photo ID and social security card
• Proof of home residence and business address
• All stipulated fees

Additional documentation like state-issued certificates of incorporation or locally-issued business certificates may also be required depending on the applicant's contracting business structure. Applicants can find out the status of their background investigations or make inquiries concerning this process by contacting the DOB via email.

Individuals who pass the DOB's background investigation will be contacted with a list of instructions and required items that must be submitted to the department, following which they will be issued a registration card. This card signifies that they have been successfully registered as general contractors by the DOB. Registrants must complete the post-background investigation process and obtain their registration cards within one year. Otherwise, they will have to restart their applications from the beginning.

You can contact the DOB's Licensing and Exams Unit at (212) 393-2259 or via email to get additional information on its general contractor registration requirements and procedures. Queries can also be directed to the department at (212) 566-5000.

It is important to note that general contractors who wish to construct, remodel, repair, or modify residential land and buildings in NYC are statutorily required to obtain a separate Home Improvement Contractor License from the city's Department of Consumer and Worker Protection (DCWP). Applications for this license can either be made online or by completing and submitting a Basic License Application Form in person at the following locations:

In-person applicants will have to schedule appointments via email or by calling (212) 436-0441 between the hours of 8:00 a.m. – 4:00 p.m., Mondays to Fridays, before visiting the aforementioned locations. Home improvement contractor license applicants will also have to meet certain eligibility criteria, which include:

• Passing a licensing examination
• Paying all stipulated licensing fees
• Submitting proof of acceptable insurance coverage
• Submitting proof of home and business address
• Submitting proof of tax registration
• Providing any additional documentation that the DCWP may request at the time of the application

Queries related to the DCWP's home improvement contractor licensing process and requirements can be directed to the department by calling 311 or (212) 639-9675.

Ensuring that your intended general contractor has complied with all necessary regulatory requirements is an important step to ensure their suitability for your construction project. To this end, you can confirm your contractor's registration status with the DOB by utilizing the General Contractors Registrant Search platform that it provides for this purpose. If your project involves residential construction or home improvement, then you can also confirm that the contractor has been appropriately licensed for these types of activities via the DCWP's Citizen Access Portal.

How Much Do You Charge Compared to Other General Contractors in the City?

The cost of hiring a general contractor in NYC is largely dependent on the following factors:

• The type of project
• The nature and scope of the project
• The location of the project within the city
• The cost of permits needed for the project
• The cost of materials required
• Site conditions and accessibility
• The urgency of the project
• The quality of prepared construction and site plans
• Labor costs

It is always a good idea to get quotes for your projects from at least three general contractors in the city and compare these quotes before making your final hiring decisions. General contractors typically utilize one of the following pricing methods when calculating pricing for their services:

• Lump Sum Pricing: this involves the contractor providing all agreed-upon services for a fixed price. Under this method, the contractor typically asks for a higher markup when calculating their cost estimates to cover unforeseen circumstances. This type of pricing is usually preferable for projects that have a well-defined scope.
• Cost Plus Pricing: this involves the client paying the total cost of the project's materials, labor, and support plus a pre-determined percentage of this total cost to the contractor. In this case, the general contractor typically earns between 10 to 20 percent of the project's cost. This pricing method is suitable for projects with an uncertain overall scope, as the client can save money if the project's total cost turns out to be less than the estimated cost. On the other hand, the client will also have to pay additional costs if the project turns out to be more expensive than the estimate.

Note that you should never hire the contractor that provides the lowest quote, as some contractors appeal to clients by submitting initial low quotes, only to increase costs once the project commences. Always consider other factors like the contractor's level of experience and reputation as well as the nature and quality of services that the contractor intends to offer for their prices.

General Contractors in New York City earn an estimated annual average wage of $97,640. The list below compares the average hourly wage of these contractors with those of general contractors in other parts of New York State and other locations across the United States:

What Kind of General Contractor Services Do You Offer?

While general contractors in NYC are usually responsible for overseeing construction projects, the specific services they offer generally vary from contractor to contractor and from project to project. Nevertheless, many professional general contractors in the city typically offer the following key services:

• Providing cost estimates for the project
• Providing materials needed for the project
• Supplying all necessary labor for the project
• Coordinating with suppliers and vendors
• Ensuring that all necessary permits are pulled
• Overseeing the quality and timeliness of the work being done
• Ensuring that work done complies with relevant building standards and safety measures
• Hiring specialized subcontractors where necessary
• Overseeing administrative aspects of the project like scheduling, cash flow, and worker payments
• Keeping accurate records of all aspects of the project
• Performing actual construction, repairs, and renovation work where necessary

Before signing any contracts with them, you should always confirm the types of services your intended general contractor will provide for your construction project. Depending on your arrangement with the general contractor, they may either get the work done with their own crew, or you may have to hire a subcontractor to get certain aspects of the work done. Note that sometimes, general contractors may also have to hire these subcontractors outside their crew if they do not have a worker who is qualified to provide the required service.

Subcontractors are typically hired to handle aspects of construction like plumbing, electrical work, HVAC installation, carpentry, and roofing that the general contractor or laborers may not be qualified to handle personally. There are certain key differences between general contractors and subcontractors who work on construction projects, and these are:

Will You Get the Necessary Permits as Required per the City Code?

Article 105 of the New York City Administrative Code makes it unlawful to construct, alter, repair, modify, demolish, change the use or occupancy, or convert any buildings and structures as well as gas, mechanical, plumbing, fire suppression, or fire protection system in NYC without a permit. These permits are issued by the NYC Department of Buildings (DOB), and parties that commence construction and home improvement activities in the city before obtaining appropriate permits for the job can receive fines of up to $15,000. In addition to avoiding city-imposed penalties, other advantages of making sure that all necessary permits for your project are pulled before work commences include:

• Increased public safety
• Property value protection
• Saves you money on insurance
• Makes it easier to sell your property

Note that the DOB may make permit exemptions for minor alterations and repairs that do not involve structural changes to a building or modifications to its plumbing, electrical, mechanical, and fire protection systems. Permit exemptions may also be made for emergency work required to protect the public from unsafe conditions, provided that permit applications for this emergency work are made no later than two days after it commences.

Parties that wish to obtain permits from the DOB can submit applications to the department online via its DOB NOW: Build platform, and applicants can utilize the resources made available on this platform to navigate the submission process. The submission of forms and documents like construction plans and building drawings, as well as the payment of permit fees, are also usually required during the permitting process. Note that the specific documents and fees needed largely depend on the project's nature and scope. Inspections will also be required at various stages of the construction after the requested permits are issued to make sure that the work done complies with pertinent provisions of the NYC Construction Codes.

You can contact the NYC DOB at (212) 566-5000 for additional information on your construction project's permitting and inspection requirements. These types of inquiries can also be directed to the appropriate local DOB Borough Office where the intended project is expected to take place:

Do You Work with Subcontractors?

When making hiring arrangements with your preferred general contractor for your construction project, you should always find out if they will be working with any subcontractors. General contractors in New York City often have to hire subcontractors for several reasons, such as:

• To get assistance on large or diverse projects
• For increased flexibility and job productivity
• To increase cost efficiency
• To perform specific and specialized tasks that either they or the workers on their payroll are not skilled enough or licensed to provide

Common areas of construction projects that general contractors typically subcontract include:

• Electrical work
• Plumbing
• HVAC installations
• Carpentry
• Roofing
• Appliance installation
• Welding
• Painting
• Drywalling and insulation installation
• Window installation

While hiring these subcontractors is usually up to the general contractor, you should always take steps to ensure that you are not held liable if any disputes arise between your general contractor and any subcontractors involved in the project. The most common causes of these disputes are:

• Late payments
• Shoddy or unsatisfactory work

Per Section 198-E of the New York Labor Law, general contractors are liable for any debts or delayed payments involving subcontractors they hire for jobs. While this gives you a degree of protection in situations where your general contractor is responsible for hiring subcontractors for your project, you can still be exposed to liability if the subcontractor places a lien on your property.

Per state law, contractors and subcontractors that place liens on real property in NYC can lay legal claim to the property if they do not receive full payment for any construction and home improvement services they render concerning this property. Under this lien law, you can be forced to make payments to the subcontractor if your general contractor fails to pay them, regardless of whether or not you have already made the proper payment to the general contractor.

While it is possible to dispute liens, this is usually a time-consuming, stressful, and costly experience. As such, it is always in your best interest to avoid being in lien-related situations in the first place by taking the following actions:

• Due diligence: Properly research any general contractor that you intend to hire to ensure that they are reputable and professional
• Notification of any subcontracting: Ask the general contractor to provide preliminary notices that inform you of any work to be done on your project by subcontractors
• Obtain lien waiver: Insist on lien waivers for every payment made. This way, the subcontractors cannot turn around and place a lien on your property. Lien waivers are also an excellent way to ensure accountability on the part of the general contractor.
• Hire only bonded contractors: Make sure that the general contractor carries a payment bond. This way, if they fail to make payments to the subcontractor on time, a claim can be filed against the bond instead of having a lien placed on your property.
• Timely settlements: Always make timely payments to your general contractor
• Written Contract: Always put any arrangements made with your general contractor in writing

Do You Carry the Necessary Insurance Policy for General Contractors in the City?

Even though the number of construction-related incidents reported to the NYC Department of Buildings (DOB) reduced by approximately 10 percent between 2020 and 2021, there was an increase in the number of injuries and deaths caused by these incidents. Construction is a highly hazardous occupation, and workers in this industry routinely face serious safety hazards, which include, but are not limited to:

• Falls from heights
• Exposure to silica dust, asbestos, and other toxic substances
• Electrocutions
• Cuts, tears, and lacerations from tools and sharp objects on work sites
• Exposure to extreme weather
• Awkward working positions
• Injuries from flying debris and falling objects

To this end, general contractors that operate in New York City are required to comply with the following insurance requirements:

• They must carry general liability insurance with a minimum coverage of $1,000,000 per occurrence
• They must maintain workers' compensation insurance for their employees
• They must carry disability insurance where necessary

Hiring a general contractor that has not complied with the DOB's mandatory insurance requirements makes you liable for any injuries that the contractor and any subcontractors that may be involved in the job incur during the project. Working with uninsured contractors also means that you will have to bear the cost of any damages to your property that may be caused directly or indirectly by these contractors.

Given this, it is always in your best interest to request proof of insurance from any general contractor you wish to hire in NYC and validate this proof before they commence any work on your project. One way you can do this is by utilizing the DOB's license search platform, inputting the contractor's details, and clicking on the provided result to view their current insurance status. You should also contact the contractor's insurance provider to ascertain if their insurance minimums are adequate for your project's scope and to ensure that their insurance also covers any subcontractors they hire. It is also a good idea to find out if the contractor holds professional liability insurance to cover negligence on their end.

Additional information on the insurance requirements for NYC general contractors can be obtained by contacting the city's Department of Buildings at (212) 566-5000.

Do You Provide a Warranty for Works Completed?

Warranties are guarantees given to individuals, assuring them that the goods and services they pay for will perform as expected. Warranties offered by general contractors typically fall under two categories, namely:

• Explicit Warranty: this type of warranty is written and is usually included in the project proposal or contract
• Implied Warranty: this type of warranty is not written but is still recognized by law. Implied warranties typically occur in every type of construction project, regardless of whether or not a written warranty is issued

Sub-categories of these aforementioned warranties include:

• Material and Equipment Warranty: this covers materials and items used for the construction and guarantees they are new, free from defects, and will perform as required
• Call-back Warranty: this type of warranty provides a stipulated period during which the homeowner may call back the contractor to rectify any part of the construction that was not performed correctly
• Vendor Warranty: this type of warranty is usually issued by the manufacturer or seller of products and appliances used for the construction
• Design-Build Warranty: this warranty typically covers the services of professionals like architects and engineers who may be involved in the project
• Workmanship Warranty: this warranty guarantees that optimal work is done by workers and subcontractors involved in the project
• Warranty of Habitability: this warranty guarantees that the finished building or structure is safe to live in and suitable for its intended purpose. This type of warranty is usually issued for residential structures.

When hiring general contractors in New York City, it is essential to determine the type of warranties that will be issued for the project and the terms and conditions of these warranties. Per Section 28-418.4 of the New York City Administrative Code, general contractors in NYC must issue warranties for newly constructed one, two, or three-family homes, and these warranties must have the following terms:

• The home will be free of defects due to failures arising from unskillful construction for one year from the warranty date
• The plumbing, electrical, heating, cooling, and ventilation systems of the home will be free from defects arising from a failure of the builder to have installed these systems in a skillful manner for two years from the warranty date
• The home will be free from material defects, including, but not limited to, any construction that does not comply with the NYC building code and zoning resolutions for six years from the warranty date

Note that while the areas of coverage provided by warranties for other types of structures are usually determined by the general contractor, these covered areas do not typically include the following:

• Alterations to the work that are not performed by the contractor or subcontractors that they hire
• Damage to the work caused by third parties
• Damages caused by the homeowner or property manager's failure to maintain the structure and any installed appliances or equipment per their specifications
• Damages caused by improper use of materials and equipment for purposes other than their intended use
• Normal wear and tear

There is currently no statute of repose for construction-related projects in NYC. However, per the provisions of Article 2 of the New York Civil Practice Laws and Rules, project owners must file claims for matters involving a breach of contract no later than six years after the project's completion. Claims for matters that result in property damage or personal injury must also be filed within three years.

Can You Provide References of Clients Served in New York City?

When searching for general contractors in NYC, you may get referrals from sources like friends and family who have completed similar projects, by conducting online searches, or from reputable trade associations and organizations like:

• The General Contractors Association of New York
• The National Association of Home Builders
• The Associated General Contractors of America
• The New York Building Contractors Association

However, regardless of how you contact general contractors in the city, you should always ask them for references before concluding any hiring agreements with them. Asking your preferred general contractor to provide references of local past clients they have worked with is an excellent way to gauge their professionalism, legitimacy, level of experience, and service delivery. Be wary of any general contractor who is hesitant to provide references or cannot offer up to three local references. More often than not, this indicates poor service delivery and even possible fraudulent behavior on the contractor's part.

Note that you should always contact references that you are given to get their first-hand opinions and reviews on the general contractor and how they provide their services. It is also a good idea to look up the contractor online via third-party review websites like the Better Business Bureau, Google Review, Yelp, and other similar platforms. Finally, contact the NYC Department of Consumer and Worker Protection as well as the New York Attorney General's Office to find out if any complaints have been filed against the general contractor and the nature of these complaints.

What Is the Expected Timeline for This Project?

In addition to helping you properly manage your construction project, another reason to always hire professional and experienced general managers in NYC is that these professionals are usually able to give you an expected timeline for its completion. Note that the construction timelines provided by professional general contractors are usually dependent on the following factors:

• The nature and scope of the project
• The time of year and prevalent weather conditions
• The availability of required construction materials, subcontractors, and construction crew
• Changes to the construction scope or plan
• Permits and inspections

The benefits of having a set timeline for your construction project include the following:

• It helps you monitor the progress of the project
• It helps ensure that tasks are correctly allocated and executed
• It controls costs and increases work efficiency
• It gives you a definite time frame to plan toward events like relocations, new births, retirements, weddings
• It helps you factor in possible delays to the project's completion and enables the contractor to come up with ways to mitigate these delays
• It helps prevent misunderstandings with your general contractor at the end of the day