How To Choose a Contractor in NYC — 7 Red Flags to Avoid

Red Flag 1: No NYC License

Any contractor performing work on NYC buildings must be licensed by the NYC Department of Buildings. You can verify a contractor's license at nyc.gov/buildings. No license = no protection for you if something goes wrong. Always ask for the license number and verify it.

Red Flag 2: Demands Full Payment Upfront

A reputable contractor will never require 100% payment before work begins. Standard payment terms are a deposit (10–30%) at signing, progress payments as work is completed, and final payment upon satisfactory completion. Full payment upfront is a classic setup for a contractor who disappears.

Red Flag 3: No Written Contract

Every contractor should provide a detailed written contract specifying: exact scope of work, materials to be used, timeline, payment schedule, and warranty terms. Never work with a contractor who resists putting the agreement in writing.

Red Flag 4: No Insurance

Contractors working in NYC must carry both general liability insurance and workers' compensation insurance. Ask for certificates of insurance naming you as an additional insured. Without insurance, you are liable for any injuries or damage that occur on your property during the project.

Red Flag 5: Unusually Low Bids

If one bid is dramatically lower than others, be suspicious. Low bids typically mean: unlicensed workers, inferior materials, shortcuts on preparation, or the contractor plans to request expensive change orders once work begins. Price matters — but so does quality and accountability.

Red Flag 6: No References or Reviews

Established NYC contractors have verifiable track records. Ask for references from similar projects and check Google reviews. Apex Property Services has 103+ verified Google reviews from satisfied NYC building owners — that kind of track record takes years to build.

Red Flag 7: No Permit Pulled

For most structural, facade, and major renovation work in NYC, permits are legally required. A contractor who suggests skipping permits is exposing you to serious liability — unpermitted work must be removed or disclosed in real estate transactions. Always confirm permits will be pulled.

Need Help? Call Apex Property Services

Apex Property Services is a licensed NYC contractor with 30+ years of experience. We serve all 5 boroughs and Nassau County with free estimates on all projects.

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