Sunday, May 6, 2012

Home Improvement Contracts: Subcontractor and Insurance Disclosures

Reviewed September 7, 2026.

The original post discussed a proposal requiring subcontractor identification and a new cancellation right. Those proposed terms should not be treated as the current text of General Business Law § 771.

For covered home improvement contracts, the current statute requires a signed writing with contractor identification, scope, price, timing and specified notices and payment terms. It also requires a disclosure, before the contractor or subcontractor begins work, of the existence of property or casualty insurance covering the scope of that work, including the insurer's contact information.

Coordinate statutory and negotiated requirements

The contract or local rules may separately require subcontractor identification, approval, licensing or insurance documentation. Specify the procedure for substitutions and who remains responsible for performance.

Section 771 contains a cancellation notice tied to the owner's signing, with a defined emergency exception. Do not substitute the old proposal's suggested right to cancel whenever a subcontractor is identified. Review the complete current statute and applicable local requirements before using a form.

Kushnick Pallaci PLLC assists clients throughout New York with home improvement and construction contract review. Contact 631-752-7100 or vtp@kushnicklaw.com.

Attorney Advertising. General information, not legal advice.

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