Any contractor doing residential improvement work in the five boroughs needs a DCWP license. This is the checklist, the costs and the timing, taken from the city's own application page.
Apply Now →The NYC Department of Consumer and Worker Protection (DCWP) says a person or business must hold a Home Improvement Contractor license to do construction, repair, remodeling or other home improvement work to any residential land or building in New York City. The city spells out that this includes basements, driveways, fences, garages, landscaping, patios, porches, sidewalks, swimming pools and terraces, along with other improvements to structures or land next to a home or apartment building.
So the license is not only for kitchen-and-bath remodelers. A landscaper, a fence installer or a paving crew working on a residential lot falls under it too. DCWP notes the description is a general explanation, so confirm your own scope with the agency.
DCWP licenses run on a two-year cycle that expires February 28 in odd-numbered years. What you pay depends on when you file:
| You file between | Fee | License valid for at most |
|---|---|---|
| March 1 (odd year) and August 31 (odd year) | $200 | 24 months |
| September 1 (odd year) and February 28/29 (even year) | $150 | 18 months |
| March 1 (even year) and August 31 (even year) | $100 | 12 months |
| September 1 (even year) and February 28 (odd year) | $50 (or $250 for a license running to the following odd year) | 6 months (or 30 months) |
On top of the license fee you need either enrollment in the Home Improvement Business Trust Fund, which costs $200, or a $20,000 surety bond (or third-party bond) naming DCWP as certificate holder, with a receipt showing it is paid in full through the licensing period. DCWP notes Trust Fund members who stay in do not pay again at renewal if the Fund held more than $2 million as of July of the prior year. Card payments carry a nonrefundable 2% convenience fee, and fingerprinting has its own fee paid to the vendor.
One owner-level person must pass: a sole proprietor, general partner, corporate officer, principal, director, member or a shareholder owning 10% or more. The exam is 30 questions and you need 21 correct to pass. The application fee covers two attempts; after two fails, $50 buys two more. You can only schedule after DCWP has processed your complete application and fees, and you then have 60 days to take and pass it. DCWP publishes a study guide in English and eleven other languages.
DCWP says it will deny an application missing required documents. Sidewalk work also needs a separate permit from the NYC Department of Transportation.
The upfront cost of getting licensed is modest next to what the work itself demands. For illustration only: a crew that buys materials for a job, carries payroll through it and collects in stages may have tens of thousands of dollars out before the final payment clears. Insurance certificates, the bond receipt and renewals all have to stay current while that happens, because a lapse in workers' comp proof is grounds for trouble with the license.
One thing to know up front: residential remodeling is a restricted category for many funders, and we do not promise funding for it. If your business also does commercial, municipal or other non-residential work, those receivables and deposits are a different conversation. We fund $25,000 to $5,000,000 for eligible New York businesses based on about three months of business bank statements, FICO 500+ considered. The application takes about 5 minutes and uses a soft credit pull.
According to DCWP, yes, when the work is on residential land or a building. The license covers fences, patios, driveways, sidewalks, landscaping, pools and similar improvements next to a home or apartment building.
Trust Fund enrollment is $200. The alternative is a $20,000 surety bond, whose premium is set by the bonding company, so compare quotes. DCWP publishes a list of bonding companies but does not endorse any.
Only one: a sole proprietor, general partner, officer, principal, director, member or shareholder owning 10% or more. You must confirm with DCWP who will take it.
No. DCWP states ACORD forms are not acceptable proof of New York workers' comp coverage. Use an insurer or NYSIF certificate naming DCWP, or a WCB exemption certificate.
Residential remodeling is a restricted category for many funders, so we do not promise funding for it. Businesses with non-residential revenue can apply and the file is reviewed on its bank statements.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
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