Need a Home Services Contract in New Jersey? AroundWire Can Help

In New Jersey, contracts for home services—such as repairs, remodeling, HVAC, electrical, and plumbing—are governed by both state statutes and local ordinances. Contractors must be registered with the New Jersey Division of Consumer Affairs as a Home Improvement Contractor (HIC) for most residential work, with additional licensing required for specialized trades (e.g., electrical, plumbing). Contracts exceeding $500 must be in writing and include a detailed scope of work, total price, estimated start and completion dates, and a copy of the contractor’s registration. State law (N.J.S.A. 56:8-136 et seq.) requires inclusion of a three-day right of rescission notice for consumers. Insurance is mandatory, typically including general liability and, if applicable, workers’ compensation coverage. Payment terms usually involve an initial deposit—capped at one-third of the contract price or the value of special-order materials—with the balance due upon completion or in progress-based installments. Contractors should be aware of New Jersey’s Consumer Fraud Act, which imposes strict penalties for misrepresentation or failure to comply with contract requirements. Common risk factors include noncompliance with building codes, failure to obtain required permits, and improper lien waivers. Dispute resolution often favors mediation or small claims court, with arbitration clauses sometimes included. Local municipalities may impose additional permitting and inspection requirements, making due diligence essential at the contracting stage.