Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In New York State, home improvement contractors are regulated to protect consumers. Contracts for home improvement must be in writing and signed by both parties. They should include a detailed description of the work to be done, materials to be used, the start and completion dates, the total cost of the project, and the payment schedule. Contractors are required to be licensed in New York City, Nassau, Suffolk, Westchester, Putnam, and Rockland counties; other areas may have local licensing requirements. The contract must also address the contractor's obligation to obtain necessary permits and to comply with building codes. New York law requires contractors to provide a notice to the homeowner regarding the homeowner's right to cancel the home improvement contract within three business days. Regarding mechanic's liens, contractors and subcontractors have the right to file a lien against a homeowner's property if they are not paid for services provided. Homeowners should ensure that final payments are contingent upon satisfactory completion of the work and that lien waivers are obtained when payments are made to prevent liens from being placed on their property.