In Rockland County, New York, for example, you can find licensed companies at the Rockland County Department of Weights and Measures. Parliament`s stated objective in enacting Section 286 (Contractor) was as follows: The contractor is required by law to deposit all progress payments received prior to completion into an escrow account or to deposit a deposit to protect such payments. In upstate New York, contractors working on certain housing projects must have a good understanding of New York`s home improvement contract law. According to these statutes, some protected projects have a whole series of rules and requirements that must be respected, especially with regard to what must be included in the contract between the contractor and the owner. Here`s what New York City real estate developers must (and can`t) include in a New York City construction contract. Persons who do not meet the above three requirements are employees within the meaning of the law. As such, contractors are jointly and severally liable for the employees of the contractors who employ the persons. YOU ARE NOT ENTITLED TO ANY REMUNERATION FOR YOUR SERVICES. New York State law states that you cannot enforce your contract against the landlord or demand fair value for the services provided if you are not authorized. You must have the license when you do your work and when you sue to recover money owed for your work.
The courts have ruled that it doesn`t matter if a landlord knows you`re not authorized before signing a contract. Yes, it is highly recommended to hire a “licensed” DIY enthusiast. First, hiring a licensed home improvement contract allows you to ensure that you are not hiring anyone who is minimally qualified to understand local building customs and practices. Contractors must meet certain statewide standards before New York State issues a license. Individuals who work without this licence have not demonstrated that they have met these standards and could be fraudsters or otherwise unqualified to work. Second, a licensed home improvement enthusiast knows the law and will provide you with a written contract if the cost of the renovation exceeds five hundred dollars ($500.00). Local Licensing Laws: A contractor must continue to comply with all local licensing laws. For more details, see Article 36-A of the General Economic Law and Article 71-a(4) of the Privilege Act. Employees can bring actions against their subcontractor-employer under the law, and subcontractors of subcontractors are also responsible for claims.
Claims include items such as unpaid bills: contractors are now jointly and severally liable for unpaid wages, benefits and wage supplements for their subcontractors` employees. This responsibility includes employees of subcontractors at all levels. A freelancer who alleges a violation of the law can either file an administrative complaint with the New York State Department of Labor or bring a civil action against the “binding” party within two years (for non-payment or retaliation) of the allegedly infringing act(s). Unlike the city`s law, which requires administrative complaints to be filed within two years of the alleged violation, the statewide version of the law would not set a time limit for filing administrative complaints. And previous laws did not require contractors to review and maintain records for subcontractors` employees. County laws also prohibit contractors from abandoning or not working on the project, making material misrepresentations or promises, or committing fraud with respect to the contract or any other project-related documents. There are similar laws in Suffolk, Nassau, Putnam, Rockland, and Westchester counties, as well as in New York`s five boroughs. DIY contracts must be written in plain English and require the contractor to provide approximate or estimated dates of commencement of work, date of completion, and contingencies that may delay completion of work. A description of the work to be performed, the materials to be provided by the owner and the agreed cost of the equipment and consideration for the work must also be provided, as well as confirmation that the contractor is required to transfer any advance to an escrow account, indicating whether an agreed payment schedule is in place (NYS General Business Article 36-A, Articles 770 to 774). Now let`s get to the heart of these statutes: what should be included in a home improvement contract in New York? These requirements can be found at NY Gen. Bus. Law §771.
The first step is that the contract must be written and signed by both the contractor and the owner. Yes. If a subcontractor works for a general contractor who is not licensed, but is obligated, the general contractor and subcontractor are likely to lose their mechanic`s privileges and/or any recovery from the owner. In this case, the supplier should contact the general contractor exclusively. If an employee makes a claim against their employer who was a subcontractor for another contractor, the contractor is also responsible for the claim. However, the subcontractor has a six-year limitation period, while contractors have a three-year limitation period. Section 36A of the General Economic Law requires that each DIY contract include a total price of $500. or more, must be made in writing and contain provisions such as a description of the work to be performed, inform the owner of the possibility that a lien may be invoked on the property for unpaid claims, that the contractor is required to deposit all payments received prior to completion in accordance with paragraph 4 of section 71A of the privilege, and that in lieu of such deposit, the contractor may leave a security deposit or provide the owner with an indemnification agreement or letter of credit that guarantees the repayment or proper use of the owner`s payments for the purposes of the contract. I hired a handyman to renovate my house. The contractor did all the work correctly and I am very satisfied with the results. However, I am having trouble paying my contractor the rest of the balance owing. What will happen? If an employer mistakenly classifies an employee as an independent contractor or pays an employee off the books, the employer will be penalized.
Again, it is the contractor`s responsibility to ensure that subcontractors do not misclassify employees or pay them on the books. Joint and several liability is a law that holds all parties to a dispute liable for damages up to the total amount owing. If a contractor is jointly and severally liable for the employees of his subcontractor, he is also liable, but separately, for the claims asserted by the employee. There is a three-year statute of limitations for claims against contractors for violation of the new law. Every year, residents and homeowners in the New York metropolitan area spend more than a billion dollars on home renovations. Work ranging from renovating a bathroom or kitchen, to repairing a leaking roof, to a multi-million dollar cleanup, adds pride and vitality to our neighbourhoods. The purpose of this brochure is to provide important information about the home improvement business that every contractor, subcontractor and consumer should know that the contractor and subcontractor must hold a license issued by the Department of Consumer Affairs or any other licensing authority covering the geographic area in which the contractor or subcontractor operates. The licensing requirement is often overlooked and can result in the contractor or subcontractor not receiving compensation for their work, as well as the imposition of severe civil penalties and criminal liability.
In addition to all the required information listed above, roofers have additional requirements for such covered projects In Westchester County, New York, the Building Permits Act is administered by Westchester County, Department of Consumer Protection. In a rather aggressive stance, the department actually compiled a list of “renegade renovators” who advised consumers to avoid such contractors (presumably because they had already had problems). In addition, be careful if your home improvement enthusiast organizes or facilitates directly or indirectly the financing of your home renovation contract, as he will have to fill out a disclosure form to explain his link with the financing. Your Consumer Bill of Rights clearly outlines this requirement and provides a form. Has a contractor filed a lien against your home? If so, read this article by Peter Klose on the subject. New York employees are eligible for state and federal worker protections, including: Companies that outsource work to New York have a new law they may have on their radar: the New York Independent Contractor Act. But what is the new law? Which companies are affected by the new law and how? Read on to learn more about New York`s Independent Business Owners Act. Throughout New York and the Hudson Valley, consumers/homeowners are protected by state and local laws. For example, if the contractor does not properly deposit (protects/confiscates) deposits and prepaid fees [i.e., does not receive money from an owner], the contractor is required to treat these deposits as an escrow or escrow account. These funds cannot be used for other projects or for the benefit of the contractor until these costs are earned (read fine print). Ultimately, the contractor must maintain accurate books and records that identify the particular project in terms of how the funds are used; and you have the right to have these books and records inspected.