New Jersey contractor license requirements

Licenses and registrations

Home Improvement Contractor Registration

Any contractor in the business of selling or making home improvements on residential or non-commercial properties, including part-time contractors, out-of-state contractors and subcontractors who never deal with the consumer.

• Good to know: Home improvement does not include building a new residence. Exemptions include work on your own or a family member's home, work only on commercial property, retailers that do not charge for installation, home improvement retailers with a net worth of at least $50,000,000, and licensed professionals such as electrical contractors and master plumbers working within their license. New home builders are exempt for new construction but must register for additions or renovations.

Home Improvement Contractor License (individual, under P.L. 2023, c. 237)

Individuals performing home improvement services, once the licensing requirement takes effect.

• Good to know: The license requirement (N.J.S.A. 45:5AAA-9) stays inoperative until the first day of the sixth month after the board adopts its rules. Licenses will be renewed every two years. The board may issue limited specialty licenses, including drywall installation, painting and plastering, roofing, and carpeting and flooring.

Principal Home Improvement Contractor License (under P.L. 2023, c. 237)

A licensed contractor who oversees contracts valued at a minimum of $120,000 that require plans with more than one subcode.

• When it applies: Contracts valued at a minimum of $120,000 that require submittal of plans with more than one subcode.
• Good to know: A contractor business doing this work must employ a licensed principal.

Home Elevation Contractor (registration and future license)

Contractors who raise homes.

• Good to know: Must carry insurance specifically covering home elevation activities of at least $1,000,000 per occurrence, in addition to the $500,000 general liability coverage.

What you need to qualify

• Exams: None for current registration. Under the 2024 law, individual license applicants must pass the board's education and examination requirements once licensing takes effect.
• Experience: None for current registration. Under the 2024 law, license applicants must be at least 18 and complete an approved apprenticeship or training program, or have at least two years of experience under the direct oversight of a licensed contractor. Contractors registered for at least five years when the act takes effect may be licensed without meeting the training, experience and exam requirements.
• Insurance: Commercial general liability insurance of at least $500,000 per occurrence, in the contractor's name.
• Bond: P.L. 2023, c. 237 (N.J.S.A. 56:8-142) requires contractor businesses to hold a compliance bond, letter of credit or other security of at least $50,000 for contracts over $120,000 (or $750,000+ in contracts in the prior 12 months), $25,000 for contracts of $10,000 to $120,000 (or $150,000 to $750,000 in the prior year), and $10,000 for contracts under $10,000 (or under $150,000 in the prior year).
• Business registration: Applies to sole proprietorships, partnerships, corporations, LLCs and other business forms. Applicants complete a Disclosure Statement. A past conviction does not automatically disqualify an applicant, who must show clear and convincing evidence of rehabilitation.
• Also required: The registration number must be displayed at business locations and on advertisements, business cards, commercial vehicles and business documents.

Fees, renewal and continuing education

• Fees: Registration fee: $110 (non-refundable).
• Renewal: Registration is renewed every year. The Division's FAQ says to renew before March 31; its applications page says renewals can only be done online between January 1 and April 30. Future individual licenses will renew every two years.
• Continuing education: None for current registration. Under the 2024 law, licensed contractors will need at least six hours of continuing education per two-year renewal.

Contracts and homeowner protections

Home improvement contracts over $500, and any changes, must be in writing and signed by all parties. Under the 2024 law the contract must include the business's legal name, address and registration number, the licensed contractor's license number, a copy of the liability insurance certificate with the insurer's phone number, and the total price including finance charges. The consumer may cancel until midnight of the third business day after receiving a copy of the contract, and refunds are due within 30 days. Municipalities cannot issue construction permits to unregistered contractors who are required to register.

Electrical, plumbing and HVAC work

Electrical contractors and master plumbers hold separate state licenses and are exempt from home improvement registration when working within their license. The specific licensing boards for electrical, plumbing and HVAC work were not confirmed on an official page.

City and county rules

Since January 1, 2006, the state registration law supersedes municipal home improvement contractor licensing. Contractors still need municipal construction permits and must pass inspections.

Working without a license

Working without required registration is an unlawful practice under the Consumer Fraud Act. The Division lists civil penalties of up to $10,000 for a first offense and up to $20,000 for each later offense, and knowing violations are a crime of the fourth degree. Knowingly violating the advertising rules or transferring a registration carries civil penalties of up to $15,000 for a first violation and $25,000 for later violations (N.J.S.A. 56:8-146.1).

What to confirm with the state

We couldn't confirm these on an official page when we checked. Ask the licensing office before you rely on them:

• Whether the State Board of Home Improvement and Home Elevation Contractors has adopted rules, and the date individual licensing becomes mandatory
• Whether the Division is currently enforcing the compliance bond requirement in N.J.S.A. 56:8-142
• Fees for the future individual license
• Which boards license electrical, plumbing and HVAC work
• New home builder registration details (Department of Community Affairs)

Sources

1. New Jersey Division of Consumer Affairs home page
2. Home Improvement Contractors FAQ (NJ Division of Consumer Affairs)
3. Home Improvement Contractors Applications (NJ Division of Consumer Affairs)
4. P.L. 2023, c. 237 (NJ Legislature)