Thursday, February 28, 2008

N.J. Home Improvement Law Reaches Milestone

New Jersey's Home Improvement Contractor law has reached a milestone on its second anniversary, as contractor registration applications at the Division of Consumer Affairs reached 50,000. The HIC law, which took effect on Jan. 1, 2006, requires all home improvement contractors to register annually with the Division of Consumer Affairs. To date, more than 43,000 registrations have been issued for the applications received. The remaining 7,000 applications are pending review or have been found to be missing data.

Among other things, registered home improvement contractors must:

  • maintain commercial general liability insurance in a minimum amount of $500,000 per occurrence;

  • display the state-issued HIC registration number in their place of business, in all advertisements, in all business documents including contracts and on all commercial vehicles;

  • * put home improvement contracts with a purchase price exceeding $500 in writing and list all terms and conditions of the contract including: price; a description of the work to be done; materials to be used; and the dates or time period within which the work will be begun and completed. The contract must be signed by all parties; and

    * provide a copy of the certificate of commercial general liability insurance with the contract

HICs cannot obtain construction permits from municipal construction code offices unless they are registered, under state law.

More than 30 home improvement contractors settled matters involving violations of the HIC law last year, mainly through Consent Orders entered into with the Division of Consumer Affairs. The Office of the Attorney General and the Division also have filed suit against home improvement contractors for alleged HIC violations.

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