Home Improvement Contractor License NJ. With many big public projects underway, as well as a marked growth in multifamily construction, which once again reached pre-recession levels, industry experts are predicting busy times for construction contractors at the next two years. The good news is that there will be work for different sorts of builders, as even tiny businesses are starting to put money into renovation, spurred by the wave of financial recovery.
So if you have been contemplating becoming a builder in New Jersey, you have picked the perfect moment. As with any market, you need to get a good comprehension of the licensing conditions prior to dip in. Though it may seem complex at first, it really isn’t. So without further ado, here’s how to get a Home Improvement Contractor License NJ in a few straightforward actions.
1. Find Your Regulatory Body
New Jersey does not have a contractors’ state license board, so different contractors will need to discover the authority they need to register with. In the case of general contractors (or home improvement contractors), and many other kinds of New Jersey contractors, the licensing authority is the Department of Consumer Affairs.
Note, however, that pursuant to the Public Works Contractor Registration Act, if you would like to participate in public works project, you have to also register with the Department of Labor and Workforce development. You have to apply for a Contractor Registration Certificate which is valid for 1 year and costs $300. If you’ve been a registered builder for two consecutive years and have no violations on your document, you could save $100 by getting a two-year renewal.
2. Fill in the Forms
Since the state of New Jersey treats builders as a business entity, you’ll also need to get several business ID numbers, used for accounting purposes. You can obtain them by filling in the Business Registration Application and submitting it to the Division of Revenue.
Another important type, this time directly connected to a profession, is known as the Home Improvement Contractor Application for Initial Registration. To fill it in you’ll need to provide your physical address, your type of business, as well as advice about other owners, if any. The form may also provide you a much better idea of exactly what your rights and duties as a New Jersey home improvement contractor are.
3. Buy Insurance
Your Home Improvement Contractor License NJ Application for Initial Registration won’t be complete without the amount of your own insurance on it, in addition to a copy of the policy. New Jersey contractors will need to hold liability insurance for a minimum of $500,000 each accident.
The insurance provides coverage for you in case you suffer a work-related accident. It should not be confused with a surety bond, which you’ll also need.
Talking of surety bonds, even in your case the one you need is called a contractor license bond. It serves the opposite purpose of your insurance, as it’s designed to protect not you personally, but your customers, as well as the condition. It’s a regulatory measure set up to make certain contractors comply with state laws and that a defrauded client can seek their own rights. Start your contractor license bail program.
Thinking about how to calculate your surety bond cost? Similarly to your insurance, contractor license bond prices are paid in yearly premiums. The price will be determined mostly by your personal credit score, though other factors can also be considered, such as time in business, professional expertise and fiscal statеments.
If you’ve got a fantastic credit standing you need to expect premiums of approximately 1% — 3 percent of the total bond amount, while a poor credit score may raise premiums as high as 15%.
4. Finalize your application
All that remains for you to do is sign a disclosure agreement in which you should record your past criminal violations as well as those of anyone who owns more than 10 percent of your business. When all the details are sorted out, send your Home Improvement Contractor Application to:
Regulated Business Section
124 Halsey Street
Newark, New Jersey 07101
The application ought to be accompanied by a non refundable fee of $90. When successful, your New Jersey builder’s license will be valid for a full year. Home Improvement Contractor License NJ