What a Home Improvement Contract Must Include in NJ
In New Jersey, a home improvement contract over $500 must be in writing and signed. It must state the contractor's legal name, business address and registration number, the work and principal materials, the start and completion dates, and the total price. The homeowner can cancel within three business days of receiving a copy.
Short answer. In New Jersey, a home improvement contract over $500 must be in writing and signed. It must state the contractor's legal name, business address and registration number, the work and principal materials, the start and completion dates, and the total price. The homeowner can cancel within three business days of receiving a copy.
Which home improvement contracts must be in writing in New Jersey?
A New Jersey home improvement contract must be in writing when the price is above $500. Under the Division of Consumer Affairs' home improvement rules, N.J.A.C. 13:45A-16.2, all home improvement contracts over $500, and all changes to their terms, must be in writing and signed by every party.
Changes after signing fall under the same rule. A change in scope or price needs a signed written change, and the rule separately requires that any change to the dates or time periods in a written contract be agreed in writing. For how change orders work, see What Is a Change Order, and When Should You Sign?.
What must a New Jersey home improvement contract include?
A New Jersey home improvement contract must identify the contractor, the work, the schedule and the price. N.J.A.C. 13:45A-16.2 requires the contract to set out all its terms clearly, in legible and understandable language, including the items below. The Division of Consumer Affairs' consumer brief on hiring contractors also lists the contractor's registration number among the required items.
| Required term | What it covers |
|---|---|
| Legal name and business address | Of the contractor, and of any sales representative who negotiated the contract |
| Registration number | The contractor's state home improvement business registration |
| Liability insurance certificate | A copy of the required commercial general liability insurance certificate and the insurer's telephone number |
| Description of the work | Including name, make, size, capacity and model of principal products, and type and grade of principal materials |
| Total price | Including all finance charges; for time and materials, the hourly labor rate |
| Dates | When the work will begin and be completed |
| Security interest | Any mortgage or security interest taken for financing |
| Warranties | A statement of any guarantee on products, materials or labor |
| Cancellation notice | The statutory three-business-day cancellation notice, prominently printed in at least 10-point bold type |
How does the three-day right to cancel work in New Jersey?
A New Jersey homeowner may cancel a signed home improvement contract for any reason during a short window after signing. Ocean County's Office of Consumer Affairs states that a signed contract may be canceled for any reason before midnight of the third business day after the consumer receives a copy. The required cancellation notice states that a homeowner who cancels within the three-day period is entitled to a full refund. Cancel in writing and keep proof of delivery. The statutory notice must appear prominently in the contract in at least 10-point bold type, and the homeowner should retain a copy.
What do New Jersey's warranty and price rules require?
Warranties and price disclosures in a New Jersey home improvement contract have their own requirements under N.J.A.C. 13:45A-16.2. The contractor must give the homeowner a written copy of every guarantee or warranty, stated specifically and including any exclusions or limits. The rule also makes it unlawful to misrepresent or fail to disclose that the price excludes financing charges, permit fees, or other costs the buyer must pay.
What should a homeowner check before signing?
A homeowner should confirm a contractor's state registration before signing a New Jersey home improvement contract. The Division of Consumer Affairs states that a contractor required to register who has not, including one that failed to renew annually, may not sell or make home improvements in New Jersey. Since the state's 2024 contractor law, registration has required workers' compensation insurance unless exempt, and a compliance bond, letter of credit or other security.
Two more terms belong in the contract: who files the permits, and how payment is scheduled. Under N.J.A.C. 13:45A-16.2, a contractor may not start work until required permits are issued. See Who Pulls the Permit, You or Your Contractor? and How Much Should You Pay a Contractor Up Front?.
Why keep the contract after the job is done?
A signed home improvement contract is the fullest written record of what was agreed for a job: the scope, the principal materials, the dates, the price and the warranties. A future buyer, appraiser or insurer asking about past work on a house will be asking for that document.
Keep the contract with the final invoice, permits and inspection certificates. Public records capture only part of the work done on any house, so start with what is on record, then fill in the rest. Ruxlo is building the work history of every home that way.
Key Facts
- Under N.J.A.C. 13:45A-16.2, New Jersey home improvement contracts over $500, and all changes to them, must be in writing and signed by every party.
- Under N.J.A.C. 13:45A-16.2, the contract must state the contractor's legal name and address, the work and principal products, the total price including finance charges, and the start and completion dates.
- A New Jersey homeowner may cancel a signed home improvement contract for any reason before midnight of the third business day after receiving a copy.
- Under N.J.A.C. 13:45A-16.2, a contractor must give the homeowner a written copy of every guarantee or warranty, including exclusions and limits.
- The New Jersey Division of Consumer Affairs bars a contractor that has not registered, or has not renewed annually, from selling or making home improvements.
This article is general information, not legal advice. New Jersey contractor requirements can change. Check current requirements with the New Jersey Division of Consumer Affairs before relying on a contract.
Sources
- N.J.A.C. 13:45A-16.2, Unlawful practices
- N.J.S.A. 56:8-151, required contract terms and cancellation notice
- NJ DCA, Hiring Home Improvement Contractors (consumer brief)
- NJ DCA, Home Improvement Contractor Business FAQ
- NJ DCA, Notice on P.L. 2023, c. 237 changes and new registration requirements
- Ocean County Consumer Affairs, Home Contractors
- Willingboro Township, HIC contract requirements and cancellation notice
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