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This entry was published on 2021-10-29
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SECTION 771
Contract provisions
General Business (GBS) CHAPTER 20, ARTICLE 36-A
§ 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.