When you hire a contractor for a residential renovation — or when you work as one — whether the contractor holds the correct local license matters a great deal.

New York does not have a single statewide “home-improvement” license regime for all municipalities; instead licensing is driven by local law. Several counties (most prominently New York City, Nassau and Suffolk) and many cities require home-improvement contractors to register or be licensed, and towns and villages often impose their own registration, permit, insurance, or local licensing rules on contractors doing work inside their borders. This article explains how the local licensing regime works on Long Island and elsewhere in New York, how towns and villages fit into the picture, what happens to subcontractors, and the severe legal consequences an unlicensed contractor can face — including being barred from recovering under the contract or from enforcing liens. Sources and controlling cases are cited throughout.

1. High-level rule: local licensing governs and noncompliance is costly

New York’s practical rule is straightforward: if the town, village, city or county where the work is performed requires a license for home-improvement work, a contractor (and in many cases a subcontractor who deals directly with a homeowner) must hold that license to enforce a home-improvement contract or recover payment. Courts have repeatedly held that failure to be properly licensed under a local home-improvement licensing statute typically bars recovery on contract and in quantum meruit, and can prevent lien enforcement. The Attorney General’s consumer guidance emphasizes that home-improvement contractors must be licensed in numerous New York counties and cities and directs consumers to county consumer affairs offices to verify licenses. (New York State Attorney General)

2. County licensing (Long Island examples: Suffolk and Nassau)

Suffolk County

Suffolk County issues home improvement contractor licenses through its Consumer Affairs office and maintains detailed licensing rules, fee schedules, and enforcement authority. The Suffolk County code and county Consumer Affairs pages explain who needs a license and the application/fee structure. Suffolk commonly requires a county home-improvement license for contractors performing residential remodeling and related work within the county. (Suffolk County Government)

Nassau County

Nassau County likewise requires a county home-improvement contractor’s license for many classes of residential work; Nassau’s consumer affairs materials and industry guidance (including county licensing FAQs) set out application steps and the categories of work that require licensing. Contractors doing home-improvement work in Nassau County should consult the county’s consumer affairs office and the county’s license instructions. (nespapool.org)

Practical point

If you are a contractor working on Long Island, you must check both the county requirements (Nassau or Suffolk) and the particular municipality’s rules where the job is located — the county license does not automatically eliminate town/village registration or permit obligations. County consumer affairs offices are the usual starting point for verification. (Suffolk County Government)

3. Cities, towns and villages: additional licensing, registration, permits and insurance

Cities, towns and villages often have separate business licensing schemes. Examples include the City of New York, Town of Southampton, Town of East Hampton, and City of Long Beach, all of which require home improvement contractors to be licensed. This list is not exhaustive, so contractors doing work in the cities, towns, and villages should consult the specific municipality.

Practical point

One question that comes up is whether having a local license with a city, town, or village excuses compliance with the county licensing requirements. Unfortunately, there is conflicting guidance from the courts that have addressed this question.

One court decision, Louis Savarese General Contracting v. Mychalczak, 272 A.D.2d 300, 707 N.Y.S.2d 473 (2^nd Dept. 2000), found that a contractor who was licensed by the Town of East Hampton satisfied the licensing requirement even without having a Suffolk County license. (Google Scholar). Another, more recent court decision, Thomas Lavin Constr., LLC v. Epstein, 226 A.D.3d 1059, 210 N.Y.S.3d 265 (2^nd Dept. 2024), found that a contractor who was licensed by the Town of Southampton but not Suffolk County could not enforce its contract. (Google Scholar).

Where courts agree on the determination of a legal issue, it is safe to follow their guidance. Where courts disagree on the determination of a legal issue, however, the only resolution would be for the same court or a higher court to address the discrepancy and render a decision one way or the other. Because of the unique factual situation presented by this issue, it may be some time before the courts clarify their position. In the meantime, best practice is for contractors to be licensed at both levels rather than take the risk of being unlicensed, which is discussed below.

4. Subcontractors: dependent rights and separate licensing obligations

A subcontractor’s ability to recover can depend on multiple facts. Some rules to keep in mind:

• Where the general contractor is unlicensed under the local home-improvement law that governs the owner–contractor relationship, courts have often held that the subcontractor’s right to recover against the homeowner is derivative of the general contractor’s right — meaning an unlicensed general contractor’s failures can block recovery by the chain of parties (the subcontractor may be limited to claims against the general contractor). Appellate decisions state that a subcontractor’s right to recover is derivative of the general contractor’s right to recover from the owner. (New York State Unified Court System)
• Many local ordinances expressly require that subcontractors performing regulated trades be licensed or registered. Even where a subcontractor is licensed, courts have sometimes denied recovery against the homeowner where the subcontractor’s work was performed pursuant to an unlicensed general contractor and where the subcontractor lacked a direct contract with the homeowner. (Freiberger Haber LLP)

Bottom line: subcontractors should confirm both the general contractor’s compliance and whether the local law requires the subcontractor to hold its own registration or license.

5. Legal effect of not having the required license — what courts have held

New York courts have repeatedly ruled that lack of the required local license has serious consequences. The principal effects include:

• Bar to contract recovery: An unlicensed contractor may not enforce a home-improvement contract against a homeowner (i.e., the contractor cannot obtain recovery on the contract). The New York Court of Appeals established and reaffirmed the rule that where local law requires licensing for the home-improvement business, a contractor who fails to comply cannot recover under the contract. See B & F Bldg. Corp. v. Liebig, 76 N.Y.2d 689 (1990). (Casemine)
• Bar to quantum meruit/unjust enrichment: Courts also bar recovery on quasi-contractual theories (quantum meruit/unjust enrichment) where the licensing statute is intended to protect consumers. The Appellate Division and other courts have enforced that rule repeatedly (for example, J.M. Bldrs. & Assoc., Inc. v. Linder, 67 A.D.3d 738 (2d Dep’t 2009)). (Nissenbaum Law Group)
• Loss of mechanic’s-lien rights: Unlicensed contractors generally forfeit the ability to file or enforce mechanic’s liens arising from the regulated home-improvement work. Decisions such as Vatco Contr., Ltd. v. Kirschenbaum (73 A.D.3d 1163) and other Appellate Division rulings make clear that licensing failures can eliminate lien remedies. (Casemine)
• No recovery even if work was performed properly: Courts routinely reject arguments that good workmanship or equitable considerations should allow recovery despite lack of a license. The policy rationale is that the statutes and local licensing rules are consumer protection measures and must be strictly enforced. See, e.g., Pond Construction Corp. v. Italine, Inc. (2021) (trial-level and Appellate decisions reiterating the bar to recovery where unlicensed). (New York State Unified Court System)
• Other decisions: Numerous Appellate Division cases reinforce the principle — e.g., Racwel Construction, LLC v. Manfredi, Al-Sullami v. Broskie, Ellis v. Gold, and others — all illustrate the consistent line of authority denying contract or equitable recovery, and in many instances denying lien foreclosure, where the contractor failed to satisfy local licensing requirements. (Justia Law)

6. Penalties beyond lost recovery

Beyond the civil remedies above, violation of local licensing and consumer-protection statutes can expose contractors to administrative penalties, fines, license suspension or revocation, and criminal or civil consumer-protection enforcement in some situations. Local consumer affairs offices enforce licensing rules and can investigate complaints; state agencies (including the NY Attorney General) also provide consumer protection tools against fraudulent or illegal contractor conduct. Even absent criminal exposure, the loss of contract recovery and lien rights is often the most devastating consequence for a contractor. (Suffolk County Government)

7. Practical compliance checklist (for contractors and subcontractors)

1. Confirm whether the county (Nassau, Suffolk, Westchester, Putnam, Rockland, etc.) requires a home-improvement contractor license for the work and obtain the county license where required. The Attorney General lists the counties that commonly require such licenses and links to local offices. (New York State Attorney General)
2. Check the city, town and village laws where the property is located for additional registration, trade cards, or insurance certificate requirements (e.g., Town of Southampton). (Southampton Town Code)
3. Maintain copies of licenses, any required trade cards, insurance certificates naming the municipality as certificate holder, and permit paperwork on every job. Many local building departments will not accept permit applications without the correct contractor documentation. (Garden City)
4. Subcontractors: confirm whether you need your own license/registration for the trade at the county or village level, and obtain it. If you work under a general contractor, confirm that the general contractor is licensed — your ability to recover from the homeowner can be affected if the general contractor was unlicensed. (Freiberger Haber LLP)

8. If a contractor discovers they were unlicensed while work is ongoing or completed

• Stop and remediate: Obtain the required license promptly and document the date you applied/received it. This does not guarantee recovery for past work, but timely correction is important for future projects and may reduce administrative penalties.
• Legal counsel: Consult an attorney experienced in construction and municipal law before asserting claims for unpaid sums. Courts have been strict; remedies are fact-specific. See the case law cited above. (Casemine)

Local licensing rules in New York matter — and they matter a lot. On Long Island, both Suffolk and Nassau counties require licensing for many types of home-improvement work, and individual cities, towns and villages frequently add their own registration, insurance and permitting obligations. Failure to secure the required license is not a mere formality: New York courts have consistently held that an unlicensed contractor may be barred from enforcing its contract, barred from recovering in quantum meruit, and may lose lien rights. Contractors and subcontractors should verify county and municipal requirements before starting work; homeowners should verify licenses before hiring. When in doubt, contact the county consumer affairs office and consult counsel.

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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• New York State Attorney General — Home Improvement fact sheet and consumer resources. (New York State Attorney General)
• Suffolk County Consumer Affairs — licensing information and fee schedule (Suffolk County home improvement license). (Suffolk County Government)
• Nassau County licensing materials / county licensing FAQ (Nassau County home improvement license resources). (nespapool.org)
• B & F Bldg. Corp. v. Liebig, 76 N.Y.2d 689 (1990) (Court of Appeals — contractor licensing rule). (Casemine)
• J.M. Bldrs. & Assoc., Inc. v. Linder, 67 A.D.3d 738 (2d Dep’t 2009) (bar to recovery where contractor unlicensed). (Nissenbaum Law Group)
• Vatco Contr., Ltd. v. Kirschenbaum, 73 A.D.3d 1163 (App. Div.) (mechanic’s lien and recovery issues tied to licensing). (Casemine)
• Pond Constr. Corp. v. Italine, Inc., 2021 NY Slip Op 50169(U) (discussing bars to recovery for unlicensed contractors). (New York State Unified Court System)
• Racwel Construction, LLC v. Manfredi (App. Div. 2009) (unlicensed contractor cannot recover). (Justia Law)