New licensing requirement for New Jersey home contractors brings needed change
Restitution would be easier for consumers without the need to go to court and engage in litigation with a contractor.
Senate Bill S1890 and Assembly Bill A2138 have passed both houses of the New Jersey Legislature and been signed by the governor. For the first time, the measure creates a license for home improvement contractors. The legislation is intended to protect New Jersey consumers from businesses that fail to complete their work or do a shoddy job. The stories of “ripped off” consumers are legion.
Current law only requires a contractor to have a liability insurance policy and register for $110 as a home improvement contractor. No proof of training, skill or experience is currently required to work on a New Jersey resident’s home nor provide adequate monetary resources to compensate consumers in the event of defective construction.
Assemblyman Paul Moriarty, a chief sponsor, noted the rigorous requirements to paint nails in New Jersey for a manicurist unlike the lenient requirements for those who pound nails. Home improvement is a growing industry and there are too many stories of homeowners victimized by unscrupulous or incompetent contractors.
A new state board, the New Jersey State Board of Home Improvement and Home Elevation Contractors, would be created and is tasked with establishing a code of ethics and standards of education and experience. New education and experience requirements will be imposed for contractors to gain a license. Under the bill, while existing contractors would be grandfathered if they have the requisite experience, new contractors must complete an apprenticeship or training program. Passing an exam would be also required. Registered businesses would be required “to have a bond, letter of credit or other type of security.”
Restitution would be easier for consumers without the need to go to court and engage in litigation with a contractor. Workers’ compensation insurance would be required. We support the legislation and are pleased the governor signed the measure.