The New Jersey legislature has been busy
since Super Storm Sandy put damage repair on page one of the news. Legislators in
Trenton have introduced over a dozen bills designed to change the way New Jersey
contractors make a living. Don’t expect any of these to make your life easier. Here
are highlights:
S.B. 1769 would impose penalties for
failure to complete work under a home improvement contract. Violation of the new
law would require a refund of all money collected or treble damages plus legal fees.
The bill would also require any applicant for registration as a home improvement
contractor to disclose affiliated individuals who have a substantial interest in
any other home improvement company. The bill is intended to end the common practice
of collapsing a company that gets into legal trouble and then starting a new company.
Introduced April 13, 2014.
S.B. 949 and A.B. 1546 would require
that dry-out contractors register with the Division of Consumer Affairs, have liability
insurance and use written contracts that comply with the Home Improvement Practices Act. Introduced
January 27, 2014.
A.B. 4394 would require that contractors
doing home elevation work meet experience requirements, register with the Division
of Consumer Affairs as home elevation contractors, carry liability insurance and
use written contracts that comply with the Home Improvement Practices Act. Last amended January 9, 2014.
A.B. 894 would allow an owner to waive
the 3-day right to cancel a contract for emergency home improvement work. The contract
has to include a specific waiver form and has to include a written estimate of the
total cost and fees. If costs exceed the estimate, a written change order is required.
Introduced January 9, 2014.
A.B. 1236 modifies warranties required
under the New Jersey’s New Home Warranty program and requires arbitration of warranty
issues by a state agency. Introduced January 16, 2014.
S.B. 1866 would allow both contractors
and owners on home improvement jobs to sue in the county where the property is located.
Current law requires that suit be brought in the county where a defendant resides.
Introduced March 24, 2014.
Will
these bills become law?
Almost
certainly not all. But some will. And New Jersey is not alone. Bills that affect
construction contractors are percolating through nearly every state legislature.
If history is a guide, construction contract law will change in most states this
year.
And
the penalty for not complying? In some states, it’s a fine of several hundred to
several thousand dollars. In states that license contractors, it’s suspension or
loss of a license. In most states, the contract is void. You may have no right to
collect the contract price.
So
how is a contractor supposed to know about changes in the law? That’s easy. Construction Contract Writer keeps your agreements legal, no matter where you work, no matter
the type of job and no matter how the law changes. That’s one thing not likely to
change.
