CONSTRUCTION CONTRACT LAW

New Jersey Construction Contract Law

Complying with NJ construction contract law isn't easy – even for experienced contractors. Construction contract law for residential work in New Jersey requires notices and disclosures designed to alert property owners to potential problems in residential construction projects. New Jersey Administrative Code § 13:45A-16.1 to 16.2 (Home Improvement Practices) and New Jersey Administrative Code § 13:45A-17.1 to 17.14 (Home Improvement Contractor Registration) require that all home improvement contracts for more than $500 and all changes to the terms of those contracts be in writing and include extensive disclosures. Failure to comply with the code is a violation of New Jersey's Consumer Fraud Act. Penalties for violation can include a refund of all money collected (New Jersey Statutes § 56:8-2.11) or treble damages plus legal fees (New Jersey Statutes § 56:8-19).

The notices and disclosures required by New Jersey construction contractor law fill several contract pages. These New Jersey disclosures are in addition to disclosures and notices required by federal law (truth-in-lending, 3-day right to cancel and insulation). That makes the shortest legal New Jersey home improvement contract about eight pages long. Contract requirements vary with the type of construction: residential, commercial, public works or home improvement. Of these, home improvement contracts are required to have the most detailed notices and disclosures.

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