Hiring Home Improvement Contractors

800-242-5846



New Jersey Division of Consumer Affairs

www.NJConsumerAffairs.gov

Hiring Home

Improvement Contractors

consumerbrief

HOMEOWNER PROTECTIONS

Each year, the New Jersey Division of Consumer Affairs

receives thousands of complaints from consumers who

hire home contractors and who are not satisﬁed with the

results. Consumers complain about shoddy workmanship,

missed deadlines, and failure to start or complete the work

after taking a deposit.

The New Jersey Consumer Fraud Act is designed to

protect you from misrepresentation, fraud and deception

in consumer transactions, including contracts for home

improvement work. The Contractors’ Registration Act

requires home improvement contractors to register with the

Division of Consumer Affairs. The registration requirements

do not apply to any person performing a home improvement

on a home they own or that is owned by a member of

their family; people who work in a home belonging to a

charity or a nonproﬁt corporation; or people who handle

maintenance for community associations or co-ops. A

person who does landscape work but only mows lawns and

trims shrubs does not have to register. However, a person

doing landscaping work must register if they plant ﬂowers,

shrubs and trees, or lays sod to establish a lawn.

Home improvement contractors who are not registered

with Consumer Affairs will not be issued municipal

construction permits and will not be permitted to perform

home improvement work in New Jersey. More information

about the law may be found on the Division’s website at:

www.NJConsumerAffairs.gov . Note: Registration with

the State does not constitute an endorsement of or

approval for the home improvement contractor.

WHO IS A HOME IMPROVEMENT CONTRACTOR?

Home improvement contractors are individuals and

companies involved in repairing, renovating,

modernizing, installing, replacing, improving, restoring,

painting, constructing, remodeling, moving, or

demolishing residential or noncommercial properties.

Home improvement contractors include those who work

on residential driveways, sidewalks, swimming pools,

terraces, patios, additions, landscaping, fences, porches,

windows, doors, cabinets, kitchens, bathrooms, garages,

ﬁnished basements, basement waterprooﬁng, insulation

installation, rooﬁng and siding, wall-to-wall carpeting or

attached or inlaid ﬂoor coverings, and more.

TIPS

■ Contact Consumer Affairs to see if consumers have

ﬁled any complaints against the contractor and to

ensure the contractor is registered.

■ Get written estimates from at least three

contractors. Ask the contractors how long they

have been in business, if they have liability insurance

(as required by law), and whether they will be using

subcontractors on the project.

■ Investigate ﬁnancing options for your project. Shop

for credit and understand the annual percentage rate

you will have to pay.

■ Do not pay for the entire job upfront. The

law prohibits HICs from demanding the final

payment on the contract before the home improvement

is completed. This means you should not make

the ﬁnal payment until the work is done.

Do not pay with cash.

KNOW THE LAW

Obtain a written contract. Contracts for home

improvement projects costing more than $500 must be

written and must include the legal name and business

address of the contractor as well as a start date, a completion

date, a description of the work to be done, and the total

price. The contract must also include the contractor’s

registration number. The contractor must also provide you

with a copy of his commercial general liability insurance

hiring-home-improvement-contractors • Revised 10/16/23

Continued

Be an Informed Consumer…We can Help!

800-242-5846



New Jersey Division of Consumer Affairs

www.NJConsumerAffairs.gov

policy and the telephone number of the insurance

company.

Make sure all warranties and guarantees are in

writing, and that the contract states the name brands or

quality/grades of materials to be used.

Before you sign a contract, ask for a lien waiver. A

lien waiver is a receipt that states that the workers and

material suppliers will not ask you for money once you

have paid the contractor. Beware if a contractor asks you

to sign a statement that says you will cover the costs of

materials and labor if the contractor does not pay.

Signed contracts may be canceled by a consumer for

any reason before midnight of the third business day

after you receive a copy of the contract. Put the cancellation

in writing and either personally deliver it to the

contractor or send it registered or certiﬁed mail, return

receipt requested. A photocopy of your cancellation should

also be sent via regular ﬁrst-class mail.

Ensure that all applicable construction permits are

obtained from the local municipality. If you are applying

for the permit yourself, provide the contractor’s name

and license number on the permit application. Do not

say that you are performing the work yourself if you are

in fact using a contractor as you may be forfeiting the

protections afforded by law.

If an electrician or plumber is doing the work, the

municipal permit must be signed and sealed by the New Jersey

licensed electrical contractor or licensed master plumber.

If the homeowner has hired an architect to draw

up plans, the licensed architect must sign off.

Determine from the municipality what inspections are

needed and when they must be performed.

Final inspections must be completed BEFORE ﬁnal

payment is made to the contractor. For information

regarding inspections, see the notice printed in large type

on the back of the construction permit.

WARNING SIGNS

If you hire a contractor, make sure you get the registration

number, name, street address, phone number, license

plate number and vehicle description. If a problem does

occur, this information will be helpful to law enforcement

agencies. Be wary if the contractor:

■ asks for more than a third of the total payment

before work can begin.

■ tells you there is no need for a written contract.

(Written contracts are required for projects costing

more than $500. We recommend you get a written

contract for all projects.)

■ demands cash.

■ only has a P.O. Box as their business address.

■ does not have a Division of Consumer Affairs

registration number, unless they are exempt from

registration requirements.

■ approaches you (when you haven’t sought them out)

claiming he/she was just in the neighborhood and

can give you a good deal.

HOME REPAIR COMPLAINTS

If you have a problem with your home improvement

project, ﬁrst give the contractor an opportunity to resolve

the matter directly. If you are not satisﬁed, you may:

■ F i l e a c o m p l a i n t o n l i n e b y v i s i t i n g

www.NJConsumerAffairs.gov

■ Call Consumer Affairs at 1-800-242-5846 to

request that a complaint form be mailed to you.

■ Call your county or municipal consumer affairs

ofﬁce for a complaint form.

HIRING OTHER LICENSED PROFESSIONALS

Persons or companies licensed by the State, such as

plumbers, electrical contractors and architects, are not

required to register as home improvement contractors

if they are acting within the scope of their profession.

Before hiring any of the professionals listed below, check

the Licensee Search link on the Division’s website or call

the appropriate licensing board to determine that the

person doing the work is licensed to do so and that

their license is active and in good standing.

LICENSING BOARDS

Architects 973-504-6385

Burglar Alarm Installers 973-504-6245

Electrical Contractors 973-504-6410

Engineers 973-504-6460

Fire Alarm Installers 973-504-6245

HVACR 973-504-6250

Land Surveyors 973-504-6460

Landscape Architects 973-504-6385

Locksmiths 973-504-6245

Plumbers 973-504-6420

(Heating, Ventilating, Air Conditioning and Refrigeration)