Peter C. Harvey, Attorney General

Division of Consumer Affairs
Reni Erdos, Director

For Immediate Release:
September 16, 2004

For Further Information Contact:
Jeff Lamm 973-504-6327

NEWARK — As the Nov. 9, 2004, deadline approaches for home improvement contractors doing business in New Jersey to become registered with the State, Attorney General Peter C. Harvey and New Jersey Division of Consumer Affairs Director Reni Erdos are urging contractors to begin submitting their applications for registration now.

The Contractors’ Registration Act, which takes effect on Nov. 9, was signed by Governor James E. McGreevey in May establishing registration requirements for those who sell and make home improvements. Contractors should submit their applications as soon as possible to ensure they are registered before the Nov. 9 deadline. Applications may be obtained by logging onto http://www.njconsumeraffairs.com/contractor.htm, calling toll-free 888-656-6225, or visiting Consumer Affairs’ offices at 124 Halsey St., Newark, or 2 Riverside Drive, Suite 403, Camden.

Each application must be accompanied by a registration payment of $90, a copy of the contractor’s certificate of liability insurance as well as other documents. To help contractors understand their obligations, Consumer Affairs has prepared an instruction sheet on how to complete the application and a sheet of "Frequently Asked Questions." These materials also can be obtained at Consumer Affairs’ website or by calling the agency.

Contractors who fail to register in time are prohibited from making or selling home improvements in New Jersey, barred from obtaining local construction permits and face civil monetary penalties as well as possible criminal charges if they continue to do home improvements without becoming registered after the effective date.

"We urge home improvement contractors to file their applications now to ensure that they are registered by the November 9 deadline," Attorney General Harvey said. "We believe that this new law will help both homeowners and contractors. By protecting homeowners, the law will increase consumer confidence and ultimately help the industry."

"Here’s a note of caution for procrastinators: This is not one of those things you want to wait until the last minute to do," Director Erdos said. "We anticipate that the registration process will take several weeks and any hesitation on the part of contractors to register only stands to delay the process and affect their ability to work."

To ensure that contractors are aware of the registration requirements, Consumer Affairs will soon be sending letters – along with the application and instruction sheet – to individuals who may be working as home improvement contractors in New Jersey. Consumer Affairs also has sent letters and application packets to municipal construction code officials encouraging them to make the packets available to contractors.

The Contractors’ Registration Act establishes the following provisions:

• Gives consumers three days to cancel a home improvement contract. The consumer must give the contractor written notice of cancellation. Contractors must refund to the consumer any money paid within 30 days of receiving the written notice of cancellation.
  
• Requires home improvement contractors — those who engage in the business of making or selling home improvements including remodeling, altering, painting, renovating, repairing, restoring, modernizing, moving and/or demolishing — to register annually with Consumer Affairs.
  
• Bars anyone who is not registered, unless they’re exempted from the registration requirements, from working as a home improvement contractor.
  
• Bars municipalities from issuing construction permits to contractors who are not registered or exempted from the registration requirements.
  
• Requires registrants to disclose to Consumer Affairs if they’ve been convicted of a crime.
  
• Requires contractors to file proof that they have secured and maintain general liability insurance in a minimum of $500,000 per occurrence.
  
• Provides that anyone who knowingly violates the Act is guilty of a crime of the fourth degree. In addition, anyone who violates the Act is also subject to civil monetary penalties under the Consumer Fraud Act of up to $10,000 for the first offense and up to $20,000 for each subsequent offense.
  
• Requires a written contract when the improvement work exceeds $500. The contract must detail all terms and conditions, including among other things the legal name, business address and registration number of the contractor; a copy of the certificate of commercial general liability insurance; and the total price or other consideration to be paid by the consumers, including finance charges.
  
• Requires contractors to post their registration numbers on all New Jersey advertisements, contracts and correspondence with customers and all commercial vehicles registered in New Jersey and leased or owned by the registrant.