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--- Document: DCA Contractors Guide for Homeowners Document ---
Hiring
Home Improvement Contractors
consumerbrief
HOMEOWNER PROTECTIONS
Each year, the New Jersey Division of Consumer Affairs
receives thousands of complaints from consumers who hire
contractors to do costly repair projects and who are less
than satisfied with the results. Consumers complain about
shoddy workmanship, missed deadlines, and a contractor’s
failure to complete the work or to start the project at all
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. In addition, the Contractors’
Registration Act requires home improvement
contractors to register with the State.
Home improvement contractors have to register with the
Division of Consumer Affairs and must register annually
thereafter, unless specifically exempted. The registration re-
quirements do not apply to any person performing a home
improvement on a home he/she owns or that is owned by a
member of his/her family; work in a home belonging to a
charity or a nonprofit corporation; or people who handle
maintenance for community associations or co-ops. A per-
son 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 he/she plants 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 construc-
tion 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 FOR CONSUMERS
■
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 be sure you 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 improve-
ment is completed in accordance with the terms of
the contract. This means you should not make the
final payment until the work is done. Do not pay
with cash.
hiring-home-improvement-contractors • Revised 11/10/15
Continued on back
Be an Informed Consumer…We can Help!
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 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 cancella-
tion 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 apply-
ing 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 on them.
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 re-
garding 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 registra-
tion 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. Look for red flags. 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 his/her business address.
■
does not have a Division of Consumer Affairs
registration number, unless he/she is exempt from
registration requirements.
■
approaches you (when you haven’t sought him/her 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 with the
results, you may:
■
File a complaint online with Consumer Affairs at:
www.NJConsumerAffairs.gov/hic/Pages/default.aspx .
■
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 re-
quired 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
his/her 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)