New Jersey Contractor License Requirements
Registration is not a licence, but here it is still mandatory. Every figure below was read off the NJ DCA (Division of Consumer Affairs) or the statute, and the sentence it came from is listed at the bottom of this page. Where a figure could not be verified this page says so rather than showing a number.
What the state requires
- Licence
- Home Improvement Contractor Business (HICB) registration
- Issued by
- New Jersey Division of Consumer Affairs, Office of Consumer Protection, Regulated Business Section (Home Improvement Contractor Business Unit)N.J.S.A. 56:8-136 et seq. (Contractors' Business Registration Act, amended by P.L. 2023, c. 237)
- Exam
- No exam
- Exam fee
- No verified figureNon-refundable initial application fee $110; annual renewal $90 if filed by March 31; duplicate/replacement registration $20. There is no separate licence fee — the registration fee is the whole cost.
- Application fee
- $110
- Initial licence fee
- No verified figure
- Licence bond
- Required; amount variesSince P.L. 2023, c. 237 every HICB must hold 'additional security' — a compliance bond, irrevocable letter of credit, or securities/money — running to the Division. The principal sum is tiered: $50,000 (contract over $120,000, or $750,000+ of contracts in the previous 12 months), $25,000 ($10,000–$120,000 contract, or $150,000–$750,000 in 12 months), $10,000 (contract under $10,000, or under $150,000 in 12 months). Because the required amount is a range, the numeric field is left null.
- General liability
- $500,000Commercial general liability of at least $500,000 per occurrence for home improvement contractor businesses (home elevation contractor businesses need $1,000,000 per occurrence), plus workers' compensation unless exempt under N.J.S.A. 34:15-1 et seq.
- Workers compensation
- Required
- Experience
- None requiredNo experience or trade qualification is required for registration; the Act is a registration and disclosure regime, not a competency licence.
- Continuing education
- No continuing education requiredNo continuing education for HICB registration.
- Renewal
- Every year
- NASCLA exam
- Not acceptedNot applicable — New Jersey sets no examination for home improvement contractor registration.
What people get wrong
New Jersey has no state general contractor licence. Existing residential home improvement work requires annual HICB registration with the Division of Consumer Affairs — no exam, no experience test. New home builders are exempt from HICB registration because they register with the Department of Community Affairs under the New Home Warranty program. P.L. 2023, c. 237 (signed 8 Jan 2024) also created the 'Home Improvement and Home Elevation Contractor Licensing Act,' N.J.S.A. 45:5AAA-1 et seq., and a new State Board of Home Improvement and Home Elevation Contractors; individual licensure under that Act was not in force on the Division's pages read for this record, so only the registration regime is captured here.
Frequently asked questions
- Do I need a contractor licence in New Jersey?
- Not from the state. New Jersey registers contractors rather than licensing them: Home Improvement Contractor Business (HICB) registration through the New Jersey Division of Consumer Affairs, Office of Consumer Protection, Regulated Business Section (Home Improvement Contractor Business Unit). New Jersey has no state general contractor licence. Existing residential home improvement work requires annual HICB registration with the Division of Consumer Affairs — no exam, no experience test. New home builders are exempt from HICB registration because they register with the Department of Community Affairs under the New Home Warranty program. P.L. 2023, c. 237 (signed 8 Jan 2024) also created the 'Home Improvement and Home Elevation Contractor Licensing Act,' N.J.S.A. 45:5AAA-1 et seq., and a new State Board of Home Improvement and Home Elevation Contractors; individual licensure under that Act was not in force on the Division's pages read for this record, so only the registration regime is captured here.
- Does New Jersey accept the NASCLA exam?
- No. Not applicable — New Jersey sets no examination for home improvement contractor registration.
Sources
“Your application will not be processed until the completed application, the required documents, and a check or money order for the non-refundable registration fee in the amount of $110, have been received by the Division.”
https://www.njconsumeraffairs.gov/hic/applications/home-improvement-contractor-application-for-initial-registration.pdf“Provide proof that you have secured and maintain a policy of commercial general liability insurance, in a minimum amount of $500,000 for each occurrence, and workers' compensation insurance, unless exempted by law.”
https://www.njconsumeraffairs.gov/hic/applications/home-improvement-contractor-application-for-initial-registration.pdf“The principal sum of the additional security must be a minimum of: 1. $50,000 for the performance of services pursuant to a contract valued at more than $120,000 or for the performance of services, in the previous 12 months, for contracts valued at a minimum of $750,000; 2. $25,000 for the performance of services pursuant to a contract valued between $10,000 and $120,000 ... and 3. $10,000 for the performance of services pursuant to a contract valued at less than $10,000 or for the performance of services, in the previous 12 months, for contracts valued less than $150,000.”
https://www.njconsumeraffairs.gov/Documents/HIC-HEC-Regarding-Changes-To-The-Law-New-Requirements-For-Registration.pdf“Initial Application fee: $110 Renewal fee: (by March 31 each year) $90”
https://www.njconsumeraffairs.gov/hic/Pages/FAQ.aspx“The Act requires any HICB engaging in the business of making or selling home improvements to register annually with the Division, unless specifically exempted from registration under the Act.”
https://www.njconsumeraffairs.gov/hic/Pages/FAQ.aspx“Every contractor shall annually register with the director. Application for registration shall be on a form provided by the division and shall be accompanied by a reasonable fee, set by the director in an amount sufficient to defray the division's expenses incurred in administering and enforcing this act.”
https://www.njconsumeraffairs.gov/Statutes/home-improvement-contractor-law.pdf