Hiring a Contractor in New Jersey? How to Check Their Registration Before You Sign

Before you hire anyone to work on your Haddonfield house, look up their New Jersey registration. Home improvement contractor businesses have to register with the state Division of Consumer Affairs every year, and you can check one in about two minutes. Pair that with a proper written contract and you've covered most of what goes wrong.

Step 1: Look them up

Ask for the contractor's exact business name and registration number. Then search the state's license verification system. Home improvement contractors are listed under Business Search, because the registration is in the business's name, not a person's. The Division's newer registration portal also has a Verify a License or Registration option.

What to confirm:

• The registration is active. The state says all current registrations expired March 31, 2026, so make sure it was renewed.
• The name matches the one on your estimate and contract.
• The right trade licenses. If an electrician or plumber is doing the work, the state says the permit must be signed and sealed by a licensed electrical contractor or master plumber.

Step 2: Know what registration means

Registration isn't a skills test. It means the business filed with the state and showed proof of insurance. Under the current law, that includes commercial general liability coverage of at least $500,000 per occurrence, workers' compensation unless exempt, and a bond or other security that scales with the size of its jobs.

Every contract must come with a copy of that liability certificate and the insurer's phone number.

Step 3: Get it in writing

Any job over $500 needs a signed written contract. The state's consumer guide says it should include:

• The contractor's legal name, business address and registration number.
• A start date and a completion date.
• A description of the work and the total price.
• Brands or grades of materials, and any warranties in writing.

Ask for a lien waiver too. That's a receipt saying workers and suppliers won't come after you once you've paid the contractor.

Your three-day right to cancel

You can cancel a home improvement contract for any reason before midnight of the third business day after you receive a copy. Put it in writing and send it by certified or registered mail, return receipt requested, or hand deliver it. The contractor has 30 days to refund your money.

Warning signs the state flags

• Asking for more than a third of the price before work starts.
• Saying you don't need a written contract.
• Wanting cash, or the final payment before the job is done.
• Suggesting you pull the permit as if you're doing the work yourself. The state says that can cost you legal protections.

Final inspections should be done before you make the final payment. Not sure your project needs a permit at all? Start with our guide to when Haddonfield requires a construction permit. If the job is old windows, read repair or replace first.

FAQ

Does every contractor have to be registered in New Jersey? Home improvement contractor businesses must register with the Division of Consumer Affairs every year unless the law exempts them. Licensed electricians and plumbers carry their own separate state licenses.

When does a job need a written contract? When it costs more than $500. The contract has to be signed and must list the contractor's legal name, address, registration number and the total price.

Sources

• NJ Division of Consumer Affairs: home improvement contractor businesses
• Hiring a Home Improvement Contractor (state consumer brief, PDF)
• NJ license verification system
• N.J.S.A. 56:8-151, contract requirements
• Division notice on new registration requirements (PDF)

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