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The New Jersey “Contractors’ Registration Act” Frequently Asked Questions - page 2 / 4





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NJ Office of the Attorney General Division of Consumer Affairs

8. What do I need to do to become registered?

To become registered, a contractor must:

    • Complete and submit an application on the form provided by the Division, including copies of all documents required;

    • Complete the Disclosure Statement page of the application;

    • File proof that it has secured and maintains a policy of commercial general liability insurance in a minimum amount of $500,000 per occurrence that provides for notice to the Division prior to cancellation or non-renewal; and

    • Pay a registration fee of $90.

  • 9.

    How do I obtain a registration application?

Application forms are available on line at the Division website (http://www.njconsumeraffairs.com/contractor.htm). Copies of the application form may be obtained by calling the Division at 1-888-656-6225 and are also available from construction officials in most municipalities.

10. Is there a registration fee?

Yes. The non-refundable registration fee is $90 payable to the Division.

11. What is the deadline to become registered?

The deadline for registration is November 9, 2004. However, completed applications should be submitted as soon as possible, as processing may take several weeks.

12. My home improvement contracting business has been in operation for many years. Is it “grandfathered,” or must it be registered?

All home improvement contractors must register, unless they are exempt. There is no provision for grandfathering.

13. Once I become registered, how long will my registration be valid?

Initial registration is valid until February 6, 2006, after which it may be renewed for additional one-year periods by filing an application on a form to be provided by the Division.

14. I only do home improvement jobs “on the side.” Do I still have to register?

Yes. The Contractors’Registration Act applies to any person, corporation, partnership or association engaging in the business of making or selling home improvements — regardless of whether the home improvements are done on a full-time or part-time basis.

15. I work for a home improvement contractor. Do I have to register?

Employees or officers of a registered home improvement contractor are not required to register with the Division separately as long as any home improvement work they are doing is done on behalf of the registered contractor. However, if the employee sells or makes home improvements “on the side” or separate and apart from the work he or she does for the registered contractor, that person must register with the Division separately.

16. I am a subcontractor of a home improvement retailer that has a net worth of more than $50,000,000. Do I have to register?

Yes. A subcontractor of a home improvement retailer must register unless otherwise exempt. However, a home improvement retailer with a net worth of at least $50,000,000 and employees of such a retailer who are making or selling home improvements within the scope of their employment are exempt from registration.

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