| Staying legal in the New York construction | | | | for violation of Albany's contract terms - maybe not |
| contracting business begins with licensing. New York | | | | want you wanted at all. Better that your contracts |
| State licenses only asbestos contractors. But that | | | | reflect what you intend rather that what Albany |
| doesn't make licensing a trivial issue in New York. | | | | prefers. It's easy to keep New York Business Law |
| Cities and counties in New York are free to require a | | | | 756-a out of your contracts. Just be sure your |
| license for any type of construction activity. And | | | | agreements cover all the bases. |
| many municipal governments do exactly that. For | | | | New York General Business Law, Section 771 is even |
| example, New York City licenses home improvement | | | | more explicit on what has to be in residential |
| contractors. A word to the wise. Don't sign a | | | | construction, home improvement and home repair |
| contract or begin work without a license. New York | | | | contracts. |
| State may be a little casual about licensing of | | | | (1) The name, address, telephone number and license |
| contractors. But New York courts are ruthless in | | | | number, if applicable, of the contractor. |
| enforcing licensing laws. Where a contracting license is | | | | (2) The dates when work will begin and be |
| required, unlicensed contractors may have no right to | | | | completed, including any contingencies that could |
| collect for work completed. | | | | delay completion. |
| But even if you don't need a license, New York State | | | | (3) A description of the work including makes and |
| jumps with both feet into your construction | | | | model numbers |
| contracts. You need to know about several statutes. | | | | (4) A disclosure in bold type that subs and suppliers |
| If you do commercial work, New York General | | | | have lien rights. |
| Business Law § 756-a supplies any key terms | | | | (5) A notice to that contractor has to deposit |
| omitted from you contracts or subcontracts. If you | | | | payments in a trust account or supply other security |
| don't cover payment dates, validity of invoices, | | | | for payment of sub contractors and suppliers. |
| grounds for disapproval of an invoice, grounds for | | | | (6) A progress payment schedule by job phase in |
| stopping work or construction delay, or several other | | | | dollars and cents. |
| topics, the legislators in Albany step right in to fill the | | | | (7) A 3-day right to cancel. |
| gap. | | | | For technical violations, the penalty is $100. For |
| How thoughtful! But that's not enough. New York | | | | substantial violations, the penalty is the greater of |
| General Business Law Section 756-b sets penalties | | | | $250 or 5% of the contract price up to $2,500. |