Licensing Guides
State Contractor License: How to Become a General Contractor in New Jersey
Contractor, NJ
Table of Contents
Why Do You Need a Contractor License in New Jersey?
How Can You Get a Contractor License in New Jersey?
Types of Contractor Licenses in New Jersey
What Are the Requirements of a New Jersey Contractor License?
How Long Does It Take to Get a Contractor License in New Jersey?
How Much Does It Cost to Get a Contractor License in New Jersey?
New Jersey Contractor License Training Programs and Schools
Does New Jersey Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in New Jersey?
Are There Any Penalties for Contracting Without a License in New Jersey?
We all need a place to live and work, and those buildings require upkeep and repair. They’re often the biggest investments we make in our lives, and keeping them in good condition is essential. We count on professionals to know how to fix damage to or wear and tear on our homes and businesses. General contractors are typically the experts we rely on to help us with these repairs, and we need these men and women to know what they’re doing.
Many states require contractors to be licensed. Others simply require solid insurance to back up the essential work they perform. There are 520,900 construction managers and 1,599,800 construction laborers and helpers nationwide according to the Bureau of Labor Statistics (BLS). New Jersey employs 9,250 managers and 20,230 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033; for laborers and helpers, it’s 8%. In New Jersey, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for both laborers and managers is 7%. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the contractor licensing requirements in your state or local jurisdiction. This guide will help you determine what you need before you get started.
Why Do You Need a Contractor License in New Jersey?
In New Jersey, you must register as a Home Improvement Contractor with the New Jersey Division of Consumer Affairs, located in Newark. The Contractor Registration Act “establishes a mandatory registration program for contractors who are in the business of selling or making home improvements in New Jersey.”
In addition to the registration, a Home Repair Contractor license is required for a “New Jersey home repair contractor who executes financed home repair contracts on the goods or services provided to New Jersey consumers for home repair work.” This type of license is issued by the New Jersey Department of Banking and Insurance (DOBI).
New Jersey also offers an electrical contractor license as well as trade-specific licenses for plumbers and HVAC technicians. New Jersey doesn’t offer a commercial contractor license at the state level. However, many municipalities issue licenses for commercial work at the local level. Make sure to check local regulations for any city or town where you plan to work.
How Can You Get a Contractor License in New Jersey?
The process for getting your license is all spelled out on the state website. The process for the Home Improvement and Home Repair license is roughly the same.
You must be at least 18 years of age. You must have either a Social Security number or an individual taxpayer identification number. A high school diploma isn’t required in the state of New Jersey.
You need to register as a Home Improvement Contractor with the New Jersey Division of Consumer Affairs and complete the Home Improvement Contractor application, along with submitting paperwork and paying the licensing fee. If you plan to offer customer financing options, you need to apply for a Home Repair Contractor license with the DOBI and pay the licensing and application fee. Regardless of licensing classification, you must specify the type of contracting business, such as sole proprietorship, LLC, or partnership, and provide proof of general liability insurance. You must also provide a disclosure statement that lists all parties with an ownership of 10% or more.
Types of Contractor Licenses in New Jersey
There are two classifications for General Contractors in New Jersey, and trade-specific licenses for plumbers, electricians, HVAC techs, and more.
The Home Improvement Contractor license is for contractors involved in repairing, renovating, modernizing, installing, replacing, improving, restoring, painting, constructing, remodeling, moving, or demolishing residential or non-commercial properties valued over $500.
The Home Repair Contractor license is for home improvement contractors who execute financed home repair contracts on the goods or services provided to New Jersey consumers for home repair work.
Getting a general contractor license
The bottom line is that you need to be licensed to do any kind of residential construction, repair, or maintenance valuing more than $500 in the state of New Jersey. Here’s how you go about getting licensed.
APPLY FOR LICENSE: New Jersey doesn’t require any previous work experience or educational degrees to apply for a contractor license. To get started, apply for a Home Improvement Contractor license or Home Repair Contractor license. You will need to mail the application to the appropriate licensing agency listed below:
Home Improvement Contractor: Fill out the form online, then print and mail it to the State of New Jersey Division of Consumer Affairs, Regulated Business Section, Home Improvement Unit, 124 Halsey Street, 7th Floor, P.O. Box 46016, Newark, NJ 07101.
Home Repair Contractor: Fill out the form online, then print and mail it to the New Jersey Department of Banking and Insurance, Licensing Services Bureau, P.O. Box 473, Trenton, NJ 08625.
PAY APPLICATION PROCESSING FEE: The fee for the Home Improvement license is $110. You must submit a nonrefundable check or money order to the Division of Consumer Affairs along with all required paperwork and documentation. The fee for the Home Repair Contractor license is $300. You must submit a nonrefundable company check (personal checks are not allowed) or money order to the Department of Banking and Insurance.
COMPLETE CRIMINAL BACKGROUND CHECK: Both license classifications require you to disclose any criminal convictions during the application process. Home Improvement candidates must sign a Disclosure Statement (within the application) specifying if any officers, directors, principals, or persons with an ownership of 10% or more have been convicted of a crime. If so, you must provide documentation around the nature and outcome of the case. Home Repair candidates must also disclose any criminal convictions. If applicable, you must complete the Arrest Form found on www.dobi.nj.gov.
PROVIDE PROOF OF INSURANCE: Home Improvement applicants must purchase general liability insurance in a minimum amount of $500,000 per occurrence. Your business name must match the name listed on the insurance certificate. Home Repair Contractors must submit proof of workers’ compensation insurance and physical liability insurance.
PROVIDE PROOF OF CONTRACTOR BOND: While not mandated at the state level, some municipalities require Home Improvement Contractors to obtain a surety bond, such as Jersey City.
Getting a specialty license
New Jersey also offers trade-specific licenses for several trades, which typically require more stringent licensing requirements, such as demonstrating hands-on experience or graduating from a trade school, university, or community college. For example, to apply for a journeyman plumber license, you must acquire four years of experience working as an apprentice or complete a four-year degree. To apply for an electrician license, you need to demonstrate 8,000 hours of work experience and 576 hours of classroom training.
For more information, consult our guides to getting your HVAC license, plumbing license, or electrical license in New Jersey.
What Are the Requirements of a New Jersey Contractor License?
You must be at least 18 years old, submit all required documentation, and meet financial prerequisites.
Complete the following steps to register as a Home Improvement Contractor license in New Jersey.
Complete the Home Improvement Contractor application.
Include your business name.
Specify the type of business: sole proprietorship, LLC, partnership.
Provide proof of general liability insurance of at least $500,000.
Include your Federal Employer Identification Number (FEIN).
List all parties with an ownership interest of 10% or more.
Provide a Disclosure Statement if any persons with an ownership of 10% or more have criminal convictions.
Pay the $110 application fee.
Complete the following steps to apply for a Home Repair Contractor license.
Complete the Home Repair Contractor license application.
Include your business name.
Specify the type of business: sole proprietorship, LLC, partnership.
Partnerships or sole proprietorships utilizing a trade name must attach a copy of the trade name certificate bearing the dated filing stamp of the County Clerk’s office in the county where their business is to be located.
List all parties with an ownership interest of 10% or more.
If applicable, attach a copy of the deed, lease, or rental agreement for the location to be licensed as listed on the application. If you conduct business from a residence, you must attach copies of letters you have sent to your local post office and telephone company advising them of the use of your residence for your business.
Submit proof of workers’ compensation insurance and physical liability insurance.
Submit proof of Home Improvement Contractor registration with the New Jersey Division of Consumer Affairs.
Pay the $300 application fee.
How Long Does It Take to Get a Contractor License in New Jersey?
Neither license requires previous work experience or passing an exam, so candidates typically receive licensure in a matter of weeks.
What Business Owners Need to Know
Being efficient in the contracting world, no matter where you are in your licensing journey, takes work. ServiceTitan’s cloud-based, all-in-one contracting software gives workers and business owners in residential field service, commercial contracting, or new construction the technology they need to do the work efficiently, and the data they need to do it effectively.
ServiceTitan features:
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How Much Does It Cost to Get a Contractor License in New Jersey?
The application fee for the Home Improvement license is $110. You also need to purchase a general liability insurance policy of at least $500,000. The application fee for the Home Repair license is $300. Home Repair Contractors also need to pay the $110 Home Improvement registration fee, as well as purchase worker’s compensation insurance.
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New Jersey Contractor License Training Programs and Schools
There are no specific educational requirements to work as a licensed contractor in New Jersey. However, there are training programs throughout the state that can help you prepare for a career in construction. For example, the New Jersey Department of Labor and Workforce Development offers the New Jersey Apprenticeship Network to connect apprentices with employers across the state.
If you choose to start your career path at a college or university, you can pursue a degree in construction management or construction engineering. There are many higher education options throughout the Garden State that offer these types of programs. Each of the following schools offers a bachelor’s degree in Construction Management.
There are also many New Jersey Community Colleges that offer Construction Management programs and associate degree and certificate options.
Does New Jersey Reciprocate Contractor Licenses?
No, the state of New Jersey doesn’t offer reciprocity for the Home Improvement Contractor license or the Home Repair Contractor license. New Jersey also doesn’t offer reciprocity for trade-specific licenses, such as electricians and plumbers.
Do I Need to Renew my Contractor License in New Jersey?
Home Improvement Contractors must renew their licenses before March 31 of each year. According to the Division of Consumer Affairs, “Reminder notices are mailed to all registered home improvement contractors in October of each year, with instructions about how to renew their registration.” Home Repair Contractors must renew their licenses every two years before April 1. Renewal instructions will be sent out in advance by the DBI.
Are There Any Penalties for Contracting Without a License in New Jersey?
Yes. There are fines, misdemeanor charges, and even possible jail time for contracting without a license in New Jersey.
According to the Division of Consumer Affairs, “Any contractor who fails to register as required by the Contractors' Registration Act but who continues to sell or make home improvements or who violates any other section of the law is subject to civil monetary penalties of up to $10,000 for the first offense and up to $20,000 for each subsequent offense. Also, anyone who knowingly violates the Act is considered guilty of a crime of the fourth degree and faces additional fines as well as possible jail time.”
National Certifications
Other certifications can help you demonstrate your proficiency to potential employers and clients. There are many professional organizations that offer certification. These certifications are not required but can add to your marketability and therefore increase your opportunity to make more money.
Some of the top construction certifications are:
Occupational Safety and Health Administration (OSHA) Safety Certificate
Construction Management Association of America Certified Construction Manager (CCM)
National Association of Safety Professionals (NASP) Certified Safety Manager (CSM) certification
National Center for Construction Education & Research (NCCER)
Continuing Education
Though New Jersey does not require continuing education to renew your license, you will want to stay informed about emerging technology in the industry. There are many ways to keep yourself current in regard to the technology put to use in construction, roofing, energy and environmental designs, efficiency standards, and more. For example, distributors want you to know about their company’s latest offerings and will often hold training sessions about new and changing equipment and parts. Another option is the Associated General Contractors of America (AGC), which provides continuing education courses.
Resources
You can stay up to date on contracting industry news several ways:
Check top blogs, including ServiceTitan’s blog.
Read about the latest industry trends, and discover ideas on how to grow your business.
Listen to top podcasts like ServiceTitan’s “Toolbox for the Trades” podcast.
ServiceTitan is a comprehensive business software solution built specifically to help service companies streamline their operations, boost revenue, and achieve growth. Our award-winning, cloud-based platform is trusted by more than 100,000 contractors across the country.
Ready to learn more about what ServiceTitan can do for your business? Contact our team to schedule a demo today.
