N.Y. General Business Law § 771: Contract provisions

§ 771. Contract provisions. 1. Every home improvement contract subject

to the provisions of this article, and all amendments thereto, shall be

evidenced by a writing and shall be signed by all the parties to the

contract. The writing shall contain the following:

(a) The name, address, telephone number and license number, if

applicable, of the contractor.

(b) The approximate dates, or estimated dates, when the work will

begin and be substantially completed, including a statement of any

contingencies that would materially change the approximate or estimated

completion date. In addition to the estimated or approximate dates, the

contract shall also specify whether or not the contractor and the owner

have determined a definite completion date to be of the essence.

(c) A description of the work to be performed, the materials to be

provided to the owner, including make, model number or any other

identifying information, and the agreed upon consideration for the work

and materials.

(d) A notice to the owner purchasing the home improvement that the

contractor or subcontractor who performs on the contract or the

materialman who provides home improvement goods or services and is not

paid may have a claim against the owner which may be enforced against

the property in accordance with the applicable lien laws. Such home

improvement contract shall also contain the following notice to the

owner in clear and conspicuous bold face type:

"Any contractor, subcontractor, or materialman who provides home

improvement goods or services pursuant to your home improvement contract

and who is not paid may have a valid legal claim against your property

known as a mechanic's lien. Any mechanic's lien filed against your

property may be discharged. Payment of the agreed-upon price under the

home improvement contract prior to filing of a mechanic's lien may

invalidate such lien. The owner may contact an attorney to determine his

rights to discharge a mechanic's lien".

(e) A notice to the owner purchasing the home improvement that, except

as otherwise provided in paragraph (g) of this subdivision, the home

improvement contractor is legally required to deposit all payments

received prior to completion in accordance with subdivision four of

section seventy-one-a of the lien law and that, in lieu of such deposit,

the home improvement contractor may post a bond, contract of indemnity

or irrevocable letter of credit with the owner guaranteeing the return

or proper application of such payments to the purposes of the contract.

(f) If the contract provides for one or more progress payments to be

paid to the home improvement contractor by the owner before substantial

completion of the work, a schedule of such progress payments showing the

amount of each payment, as a sum in dollars and cents, and specifically

identifying the state of completion of the work or services to be

performed, including any materials to be supplied before each such

progress payment is due. The amount of any such progress payments shall

bear a reasonable relationship to the amount of work to be performed,

materials to be purchased, or expenses for which the contractor would be

obligated at the time of payment.

(g) If the contract provides that the home improvement contractor will

be paid on a specified hourly or time basis for work that has been

performed or charges for materials that have been supplied prior to the

time that payment is due, such payments for such work or materials shall

not be deemed to be progress payments for the purposes of paragraph (f)

of this subdivision, and shall not be required to be deposited in

accordance with the provisions of paragraph (e) of this subdivision.

(h) A notice to the owner that, in addition to any right otherwise to

revoke an offer, the owner may cancel the home improvement contract

until midnight of the third business day after the day on which the

owner has signed an agreement or offer to purchase relating to such

contract. Cancellation occurs when written notice of cancellation is

given to the home improvement contractor. Notice of cancellation, if

given by mail, shall be deemed given when deposited in a mailbox

properly addressed and postage prepaid. Notice of cancellation shall be

sufficient if it indicates the intention of the owner not to be bound.

Notwithstanding the foregoing, this paragraph shall not apply to a

transaction in which the owner has initiated the contact and the home

improvement is needed to meet a bona fide emergency of the owner, and

the owner furnishes the home improvement contractor with a separate

dated and signed personal statement in the owner's handwriting

describing the situation requiring immediate remedy and expressly

acknowledging and waiving the right to cancel the home improvement

contract within three business days. For the purposes of this paragraph

the term "owner" shall mean an owner or any representative of an owner.

* (i) Before a contractor or subcontractor begins work on a home, such

writing shall disclose to the homeowner the existence of a property

and/or casualty insurance policy that covers the scope of such

contractor or subcontractor's employment should an insurance claim be

filed resulting from losses arising from the work at such property. Such

disclosure shall also include the contact information of the insurance

company providing such property and/or casualty insurance, including a

phone number and address.

* NB Effective April 23, 2022

2. The writing shall be legible, in plain English, and shall be in

such form to describe clearly any other document which is to be

incorporated into the contract. Before any work is done, the owner shall

be furnished a copy of the written agreement, signed by the contractor.

The writing may also contain other matters agreed to by the parties to

the contract.