New York Home Improvement Contractor Practice Test

A homeowner has the right to withhold payment until the work is completed satisfactorily when the terms of the contract are not met. This is rooted in the principle of performance under a contract, where both parties have obligations to fulfill. If a contractor does not complete the work as specified in the agreement—whether that means not finishing the job, failing to meet quality standards, or not adhering to timeframes—then the homeowner is entitled to hold back payment as a means of enforcing the contract.

This mechanism helps ensure that contractors take their contractual obligations seriously and provide the level of service and quality of work that was promised. It also provides homeowners with leverage to ensure that any deficiencies are addressed before full payment is released. In situations where the work is incomplete or unsatisfactory, withholding payment can motivate the contractor to resolve any outstanding issues to receive the remaining balance.