Home Improvement Contractor Registration

New Jersey Home Improvement Contractor Registration

The New Jersey Division of Consumer Affairs administers the Home Improvement and Home Elevation Contractor Licensing Act (P.L. 2023, c.237), which requires all home improvement contractors to register before performing work on residential properties. This is the primary state-level contractor registration in New Jersey.

Requirements

• Registration: Must register with Division of Consumer Affairs
• Insurance: General liability insurance required (minimum $500,000 per occurrence); workers' compensation insurance required (unless exempt as a sole proprietor with no employees)
• Compliance Bond: Surety bond required, tiered by contract value (see below)
• Business Registration: Valid NJ business registration required
• Application Fee: $110 (initial registration)

Compliance Bond Tiers

P.L. 2023, c.237 introduced mandatory compliance bonds with tiers set by contract value:

• $10,000 bond — required for a single contract valued at under $10,000, or when the prior 12 months' contracts are valued at less than $150,000 in total.
• $25,000 bond — required for a single contract valued at $10,000 to $120,000, or when the prior 12 months' contracts are valued at $150,000 to $750,000 in total.
• $50,000 bond — required for a single contract valued at more than $120,000, or when the prior 12 months' contracts are valued at more than $750,000 in total.

Renewal Information

• Renewal Period: Every year — the registration period runs April 1 through March 31
• Renewal Fee: $90
• Late Fee: $25 additional if the renewal application reaches the Division after the due date printed on it
• Reinstatement Fee: $50 to reinstate a suspended registration (N.J.A.C. 13:45A-17.10, 17.14)

Scope of Work

Registered home improvement contractors may perform renovation, modernization, alteration, repair, and improvement of residential properties including painting, roofing, siding, and general remodeling.

Pending Transition to Individual Licensing

P.L. 2023, c.237 also authorizes a future shift from business registration to individual contractor licensing under a new state licensing board. As of this writing, that individual-license requirement has not yet taken effect — business registration through the Division of Consumer Affairs remains the current, operative requirement.

Penalties for Non-Compliance

Violations of the Home Improvement and Home Elevation Contractor Licensing Act are violations of the Consumer Fraud Act (N.J.S.A. 56:8-146(a)) and carry that Act's civil penalties. A contractor who *knowingly* violates the Act commits a fourth-degree crime (N.J.S.A. 56:8-146(b)).

*Disclaimer: This information is provided for general reference only and does not constitute legal advice. Always verify current requirements directly with the NJ Division of Consumer Affairs.*