Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In New Jersey, home improvement contractors are regulated under the New Jersey Administrative Code (N.J.A.C. 13:45A-17.1 to 17.14), which is enforced by the New Jersey Division of Consumer Affairs. Contractors must be registered with the Division of Consumer Affairs to legally perform home improvements in the state. The registration process requires contractors to provide proof of liability insurance and, in some cases, workers' compensation insurance. Contracts for home improvement must be in writing and include specific information such as a detailed description of the work, materials to be used, the total price, payment schedule, start and completion dates, and the contractor's registration number. New Jersey law also requires that contractors provide homeowners with a copy of their commercial general liability insurance policy and a notice of the consumer's three-day right to cancel the contract. Regarding mechanic's and materialmen's liens, New Jersey's Construction Lien Law (N.J.S.A. 2A:44A-1 to 38) outlines the process for filing and enforcing liens for unpaid services or materials provided for home improvements.