RCNY §2-221

RCNY §2-221 is the New York City rule that dictates exactly what must appear in every home improvement contract used by licensed contractors. It’s the core legal checklist DCWP enforces when issuing violations. If your contract misses even one required element, you’re out of compliance.

Under RCNY §2-221, a valid home improvement contract must include:

• Contractor’s legal name, business address, phone number, and DCWP license number

• Date of the contract

• Start date, substantial completion date, and any contingencies that may affect the schedule

• A detailed description of the work and all materials, including brands and model numbers

• The total price and a payment schedule tied to specific work milestones

• Notice that unpaid subcontractors may file a mechanic’s lien

• Notice that the contractor must escrow progress payments or provide a bond/indemnity

• All warranties or guarantees offered

• A clause stating the contractor will obtain all required NYC permits

• A clause stating the contractor will provide a Certificate of Workers’ Compensation Insurance (or CE-200 exemption) before beginning work

• The mandatory three-day right to cancel statement printed in bold, minimum 10-point font

• A separate, detachable Notice of Cancellation Form in English and any language used to negotiate the contract

RCNY §2-221 is strict and itemized. DCWP frequently audits contractors using this rule, and missing requirements can lead to violations, penalties, or license issues.