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Complying with NY construction law isn't easy – even for experienced contractors. Construction contract law for residential work in New York requires notices and disclosures designed to alert property owners to potential problems in residential construction projects. Omission of any of these notices from a contract can have serious consequence. For example, New York General Business Law § 756-a supplies contract terms if not covered in the written agreement – payment dates, invoices, grounds for disapproval and grounds for stopping work. New York General Business Law § 757 voids certain contract clauses. New York General Obligations Law § 5-322.2 requires specific terms in construction contracts. New York General Business Law Article 36-A requires specific disclosures in home improvement contracts, home repair contracts, contracts for construction of custom homes and contracts for improvement or repair of leased residences. For technical violations, the penalty is $100. For substantial violations, the penalty is the greater of $250 or 5% of the contract price up to $2,500.
The notices and disclosures required by New York construction contractor law fill several contract pages. These New York disclosures are in addition to disclosures and notices required by federal law (truth-in-lending, 3-day right to cancel and insulation). That makes the shortest legal New York home improvement contract about eight pages long. Contract requirements vary with the type of construction: residential, commercial, public works or home improvement. Of these, home improvement contracts are required to have the most detailed notices and disclosures.
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