Contractors in New Jersey are often required to obtain a contractor license bond as a part of their licensing process. While New Jersey does not have a statewide mandate for all contractors to obtain bonding, specific classifications of contractors in certain cities are still obligated to secure bonds. The contractor license bond serves as a form of financial protection for the state and the public of New Jersey by ensuring that contractors comply with state laws, regulations, and licensing requirements. A contractor license bond is required in the following New Jersey cities: Oakland, Franklin Lakes, Hoboken, Jersey City, West Deptford, and Wyckoff.
Please note this page is for car dealer licensing. If you're trying to register a vehicle with a missing title, a separate Lost Title Bond is required.
Required in the following New Jersey counties: Oakland, Franklin Lakes, Hoboken, Jersey City, West Deptford, and Wyckoff
In New Jersey, according to the Contractor Registration Act, businesses that sell or perform "home improvements" must register with the Division of Consumer Affairs. This registration applies to all types of businesses, except plumbers and electricians, which have their own licensing requirements. So, if a business is involved in activities related to "home improvements," it is considered a contracting business and needs to be registered. Therefore, any business organization engaged in the following activities is considered a “contractor”:
Note that constructing a new residence is not considered a home improvement under this act.
A general process of getting this bond can be condensed into these four steps:
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In New Jersey, contractor licensing is regulated by the New Jersey Division of Consumer Affairs (DCA). The DCA is responsible for protecting the interest of consumers and ensuring the competence and integrity of contractors operating within the state.
To become a registered and licensed contractor in the state of New Jersey, the applicant must:
Home improvement contractors that operate without a license are not permitted to sell or engage in home improvement work. Continuing to sell or perform home improvements without registration may result in civil and potentially even criminal penalties for unregistered contractors. This includes:
As a result of these regulations, municipalities are no longer allowed to issue construction permits to unregistered home improvement contractors who are obligated to be registered, effective as of January 1, 2006.
Any contractor, no matter where they're from, must register with the Division if they sell or improve residential or non-commercial properties in New Jersey.
After obtaining the initial registration, it is essential to renew it annually before March 31. In January of each year, all registered home improvement contractors will receive reminder notices by mail, containing instructions on how to proceed with the renewal process.
If someone has a conviction, they won't be automatically disqualified or have their registration revoked for it. They can still register if they provide clear and convincing evidence of their rehabilitation to the New Jersey Division of Consumer Affairs. The Division considers several factors when assessing rehabilitation, such as:
If a business/bondholder fails to fulfill its obligations, its customers can make a claim against the bond. To avoid claims on your New Jersey Contractor License bond, you must operate to the guidelines set forth on your license and make good promises to customers.
To comprehend ways to prevent claims on a New Jersey contractor’s license bond, let’s examine the most frequent reasons for such explains:
To steer clear of claims on your New Jersey contractor license bond, we advise contractors to follow these guidelines: