Unlike other counties or jurisdictions in the state of New York, “The City” has some of the most detail focused guidelines to follow in order to become a construction or design professional. The New York City Department of Buildings was founded in 1892, a few years after America’s Industrial Revolution. However, there are records of some sort of city responsibility for the construction of buildings as early as the 17th century.
As the NYCDOB is responsible for building codes, issues building permits, enforces and monitors zoning regulations, and issues licenses and building inspections, it’s only natural to assume that without the granted licensing to perform work, you cannot form any sort of contractor or design professional business. Specifically, New York City Code Section 20-387 requires a general home improvement contractor to have a license, and separate code sections require licensing of other specific trades such as electricians. Design professional licensing is done through the New York State Department of Education.
In the counties of New York City, to register yourself or your business as a general contractor, you must be 18 years old, have good moral character, and submit a written application, which is available in numerous languages. You will also need to go through a rigorous background check and pass a home improvement examination. When choosing which license that would best describe your line of work, you can choose from the following discipline: electrician, elevator maintenance, high pressure boiler engineering, master plumber, oil burner installer, rigger, welder, construction site safety professionals, and more. to learn more about exams and qualifications, please click here.
While the requirements to obtain a home improvement license may seem daunting, the consequences of failing to obtain one are worse. Under New York law, an unlicensed home improvement contractor forfeits the right to collect under the contract or place a lien on the homeowner’s property. This penalty is in addition to the possibility of fines of up to $1,000.00 which the Commissioner of Consumer and Worker Protection is authorized to impose for violations of the licensing requirements under New York City Code Section 20-392.
Once your business is established in the eyes of the NYCDOB, you will need to obtain your business insurance, which has catered coverage options, as you are a contracting business. According to the Allen Thomas Group, an insurance company catering to New York City contractors, general liability insurance averages $1,700 annually. Builder’s risk insurance averages $1,608 annually, which worker’s compensation insurance averages $4,799 annually. Please note, most construction jobs in New York City have a mandatory worker’s compensation insurance policy.
In New York, it is essential that members of the construction and architecture industry must be insured before performing work. From simple home improvements, quick electrical maintenance, or designing a home from scratch, these professionals need to be licensed, despite how much experience in any given industry. Design Professionals, such as architects and engineers, are no exception to this rule. There are requirements and duties of maintaining your architectural license, and disciplinary actions, as well as revocation of your architectural license when credentials fall short and potential forfeiture of fees for unlicensed architectural practice.
In New York, it is essential that members of the construction and architecture industry must be insured before performing work. From simple home improvements, quick electrical maintenance, or designing a home from scratch, these professionals need to be licensed, despite how much experience in any given industry. Design Professionals, such as architects and engineers, are no exception to this rule. There are requirements and duties of maintaining your architectural license, and disciplinary actions, as well as revocation of your architectural license when credentials fall short and potential forfeiture of fees for unlicensed architectural practice.
To learn more about the New York City Department of Building, please click here.
John Caravella Esq., is a construction attorney and formerly practicing project architect at The Law Office of John Caravella, P.C., representing architects, engineers, contractors, subcontractors, and owners in all phases of contract preparation, litigation, and arbitration across New York and Florida. He also serves as an arbitrator to the American Arbitration Association Construction Industry Panel. Mr. Caravella can be reached by email: John@LIConstructionLaw.com or (631) 608-1346.
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