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You Need New Jersey Contracts
For some types of work, New Jersey law requires that the contract include pages
of disclosures and notices about the job, the contractor and the insurance coverage.
Failure to provide these notices and disclosures in the contract may make the contract
unenforceable. For other types of work, New Jersey law fills in specific terms if
not covered by the contract. It's easy to avoid these state-mandated terms. Just
be sure your contract covers all the essentials.
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 make these disclosures 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).
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• New Jersey Statutes Annotated § 2A:30A-1 and -2 establish time limits and procedures
for payment on most projects. Some of these time limits apply no matter what the
contract says. Other limits can be waived by contract. Penalties apply for non-compliance. |
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• New Jersey Administrative Code section 13:45A-17.11 (effective 11/4/08) requires
that contracts for home improvement work include a statement in at least 10-point
bold type about contractor registration.
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• New Jersey Statutes Annotated section 56:8-151 requires that home improvement
contracts and changes to home improvement contracts include a notice in 10-point
bold type about the 3-day right to cancel. |
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• New Jersey Administrative Code section 13:45A-16.2-a-11-I requires that home improvement
contracts include a written copy of any guarantee or warranty, including limitations,
scope and duration.
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