A must-read guide before signing any renovation or construction contract
Renovating or building in New York City? The success of your project often comes down to one thing: hiring the right contractor. With thousands of contractors across the five boroughs — and countless horror stories — doing your homework can save you money, stress, and serious legal trouble.
Here’s your no-nonsense guide to finding a trustworthy contractor in NYC.
🚨 Red Flags to Watch Out For
Before we get to the questions, let’s cover the warning signs that a contractor might not be the right fit — or worse, could leave you with an unfinished or dangerous job.
❌ 1. No License or Insurance
In NYC, all general contractors must be licensed by the Department of Consumer and Worker Protection (DCWP) or the Department of Buildings (DOB) depending on the type of work.
🧠 Always check licenses at: NYC License Lookup
❌ 2. Vague or Verbal-Only Quotes
If a contractor won’t provide a written estimate with clear labor and material costs — walk away.
❌ 3. Demands for Large Upfront Payments
Most legitimate NYC contractors will request 10–30% upfront, not 50% or more.
❌ 4. No Physical Address or Portfolio
Avoid anyone who can’t show past work or who only uses a cell number and a Gmail address.
❌ 5. Too-Good-to-Be-True Pricing
In NYC, if a quote is significantly lower than others, it’s often a sign of cut corners, cheap labor, or future “surprise charges.”
✅ Smart Questions to Ask Before Hiring
1. Are you licensed and insured in NYC?
Request proof of general liability and workers’ comp insurance. If not insured — you’re liable for accidents.
2. Can you share recent references and portfolio images?
Ask for jobs from the past 1–2 years and visit completed projects if possible.
3. Who exactly will be doing the work?
Clarify whether the contractor uses in-house workers or subs out labor — and whether subs are licensed.
4. How do you handle permits and inspections?
A professional contractor should know when and how to file permits with the DOB. If they suggest skipping permits — run.
5. What’s the project timeline and payment schedule?
Make sure the contract includes clear milestones (e.g., demolition, framing, electrical) and partial payments tied to completion stages.
6. What’s included in the quote?
Get a detailed breakdown of labor, materials, demolition, permits, and any contingencies. Ask what happens if material prices change.
7. Do you offer a warranty or post-project support?
Legitimate contractors in NYC typically offer 1-year warranties for labor. Get this in writing.
📝 What to Include in the Contract
Never begin a project without a written contract that includes:
- Scope of work
- Start and completion dates
- Payment schedule
- Itemized estimate
- Materials list
- Permit responsibilities
- Penalties for delays or non-performance
- Insurance and license numbers
🧠 Pro tip: Avoid vague language like “to be determined” or “per agreement” — insist on clarity.
🔍 How to Verify a Contractor’s Credentials
- ✔️ Check DOB License Status
- ✔️ Search for complaints via Better Business Bureau or NYC Consumer Affairs
- ✔️ Ask your neighbors, super, or local community boards
🛑 Warning: Don’t Hire “Under the Table”
Even if someone offers a lower cash price, remember:
- Work might not meet code
- You may void your homeowner’s insurance
- DOB can stop the job or fine you
- You’ll have no legal recourse if something goes wrong
🏙️ Special Tips for Co-ops & Condos
If you live in a co-op or condo:
- Review the Alteration Agreement rules
- Share them with the contractor
- Ensure the contractor provides proof of insurance to the building management
- Respect working hours and noise regulations
🏁 Final Thoughts
Hiring the right contractor in NYC takes effort — but it pays off in peace of mind, quality work, and code compliance. Don’t rush. Interview multiple contractors. Ask hard questions. And never sign anything you don’t fully understand.
✅ For trusted renovation advice, permit tips, and NYC contractor insights, visit RenovateNY.com — your go-to guide for building smarter in the city.
