How New Jersey regulates home improvement contractors
New Jersey's credential for this work is a registration. The Contractors' Business Registration Act, formerly titled the Contractors' Registration Act, sets mandatory registration and other requirements for home improvement contractor businesses, called HICBs, that sell or make home improvements in the state [1]. A business engaged in making or selling home improvements registers each year with the Division of Consumer Affairs, unless the Act specifically exempts it [1]. The registration program sits with the Division's Regulated Business Section.
The exempt categories are listed in N.J.S.A. 56:8-140, and new home builders registered with the Department of Community Affairs are among them [1].
What counts as a home improvement
The registration is for the HICB. Home improvements include, without being limited to, remodeling, painting, repairing and renovating residential property, and making additions to it [1]. Building a new residence is not a home improvement under the Act, and the law does not apply to properties being used for commercial purposes [1].
Insurance and additional security
An HICB registering with the Division files proof of commercial general liability insurance of at least $500,000 per occurrence [1], along with proof of workers' compensation insurance, unless exempt by law [1].
Registration also calls for what the Division terms "additional security." It may take the form of a compliance bond issued by a surety company, an irrevocable letter of credit issued by a bank, or securities, moneys or other security the Division accepts [1]. The amount is $10,000, $25,000 or $50,000 [1], set by the value of a contract or by the value of contracts in the previous 12 months [1]. The requirements block above lists each amount with the contract values that go with it.
Cost and annual renewal
The Division charges one fee to apply and another to renew, both shown in the fee table. As of March 3, 2025, the initial application fee is $110 per application [1].
Once a business holds its initial registration, it renews by March 31 of each year [1].
Selling or making home improvements while unregistered
An HICB that is required to register and does not, including one that fails to renew annually, is prohibited from selling or making home improvements in New Jersey [1].
An unregistered HICB that keeps selling or making home improvements, or that violates any other section of the law, faces civil monetary penalties of up to $10,000 for a first offense and up to $20,000 for each subsequent offense [1]. Separately, anyone who knowingly violates the Act may be found guilty of a crime of the fourth degree, with additional fines and possible jail time [1].
Checking a New Jersey registration
The Division publishes a lookup for home improvement contractor businesses: New Jersey Division of Consumer Affairs, Regulated Business Section (Home Improvement Contractor Businesses) license lookup.