What does New Jersey require in a home improvement contract?

The checklist

• The legal name, business address and registration number of the contractor business (N.J.S.A. 56:8-151)
• A copy of its certificate of commercial general liability insurance and the phone number of the insurer (N.J.S.A. 56:8-151)
• The total price, including any finance charges; for time-and-materials work, the hourly labor rate (N.J.A.C. 13:45A-16.2)
• A description of the work and the principal products and materials, with make, model and size where they apply (N.J.A.C. 13:45A-16.2)
• The dates or time period for starting and finishing the work (N.J.A.C. 13:45A-16.2)
• Any mortgage or security interest being taken, and a statement of any guarantee or warranty (N.J.A.C. 13:45A-16.2)
• The Notice to Consumer explaining your right to cancel within three business days, in at least 10-point bold type (N.J.S.A. 56:8-151)

Changes go in writing too

Every change to the terms of the contract must also be in writing and signed (N.J.S.A. 56:8-151), including changes to the start or finish dates (N.J.A.C. 13:45A-16.2). A change order that adds work should carry its price before the work is done.

Warranties, permits and final payment

• Written warranties. The contractor must give you a written copy of every guarantee or warranty, specific about what it covers and for how long, both with the bid and at signing (N.J.A.C. 13:45A-16.2).
• Permit fees. It is a deceptive practice to hide that the price leaves out permit fees or other charges you will owe (N.J.A.C. 13:45A-16.2).
• Permits before work. A contractor may not start until the required permits are issued, and must hand over inspection certificates before final payment is due (N.J.A.C. 13:45A-16.2).
• Final payment. A contractor may not ask you to sign a completion certificate or make final payment before the work is finished as the contract describes (N.J.A.C. 13:45A-16.2).
• Subcontracted jobs. If another company will act as general contractor, its name and address must be disclosed, and the contract may not be sold or assigned without your written consent (N.J.A.C. 13:45A-16.2).