Your NJ home improvement contract and your 3-day right to cancel.

A good contract protects both sides. New Jersey takes home improvement contracts seriously — there's a state law and a consumer protection regulation that spell out what has to be in one. I'm Rui Reis, owner of RuLee Construction in Roselle Park, and here's a plain-English rundown of what the rules say and how to use them when a contract lands on your kitchen table.

Note: This is general information, not legal advice. For questions about a specific contract, talk to a New Jersey attorney.

When a contract has to be in writing

Under New Jersey law, every home improvement contract with a purchase price over $500, and every change to that contract's terms, must be in writing and signed by all parties. The contract has to set out all of its terms clearly, in legible form and understandable language. This comes from two places:

• The state statute, N.J.S.A. 56:8-151, part of the Contractors' Business Registration Act.
• The Division of Consumer Affairs regulation on home improvement practices, N.J.A.C. 13:45A-16.2.

What the contract must include

Putting the statute and the regulation together, a written New Jersey home improvement contract must include, at a minimum:

1. Who you're dealing with. The contractor's legal name, business address, and registration number. The regulation also requires the legal name and business address of the sales representative or agent who negotiated the contract.
2. Proof of insurance. A copy of the contractor's certificate of commercial general liability insurance and the phone number of the insurance company that issued it.
3. A description of the work. What will be done and the principal products and materials to be used. Where it applies, that means the name, make, size, capacity, model, and model year of principal products or fixtures, and the type, grade, quality, size, or quantity of principal materials. If you've specified a particular product, it should be written in.
4. The total price. The total price or other consideration, including all finance charges. For a time-and-materials contract, the hourly labor rate and all other terms affecting price must be stated.
5. The schedule. The dates or time period when work will begin and be completed.
6. Any security interest. A description of any mortgage or security interest taken in connection with financing.
7. Warranties. A statement of any guarantee or warranty on products, materials, labor, or services.
8. The cancellation notice. A conspicuous "Notice to Consumer" explaining your right to cancel, covered below.

Separately, the law requires registered contractors to put their registration number on contracts and other business documents (N.J.S.A. 56:8-144). If you want to check that number, our step-by-step guide on how to check a NJ contractor's registration shows you how.

Your 3-business-day right to cancel

New Jersey gives you a cooling-off period. Under N.J.S.A. 56:8-151, you may cancel a home improvement contract for any reason at any time before midnight of the third business day after you receive a copy of it.

The contract itself must contain a conspicuous notice, printed in at least 10-point bold type, telling you about this right. It begins "NOTICE TO CONSUMER" and lists the contractor's name, address, and phone number for sending a cancellation.

How to cancel

The law is specific about how to do it. You must notify the contractor in writing, either:

• by registered or certified mail, return receipt requested, or
• by personal delivery of a signed and dated written notice,

to the address listed in the contract. A phone call or a voicemail is not the method the law describes. Keep a copy of your notice and your mail receipt.

What happens to your money

If you cancel within the three-day window, everything you paid must be fully refunded within 30 days of the contractor receiving your cancellation notice. If you signed a credit or loan agreement through the contractor to pay for the job, that agreement must be cancelled without penalty, and you must be mailed written notice of that within 30 days.

The clock starts when you receive a copy of the contract, so make sure you get one at signing. Whoever you hire, ask them to point out the Notice to Consumer in the contract — you should be able to find it on your own.

Changes must be in writing too

Remodeling projects change. You pick a different tile, we open a wall and find something nobody could see. The law covers this: any change to the terms and conditions of a contract over $500 must be in writing and signed by all parties. The regulation adds that any change to the start or completion dates must be agreed to in writing, and that a contractor must give you timely written notice of a delay caused by something outside its control, with when the work will begin or be completed.

The regulation also says a contractor can't swap in different products or materials from those in the contract without your knowledge or consent.

For us, this is just how the job runs: every change is handled in writing with a written change order before the work changes. You can see how that fits into the rest of our steps on our process page.

Warranties must be in writing and specific

Under N.J.A.C. 13:45A-16.2, a contractor must give you a written copy of all guarantees or warranties on labor, products, or materials. Those warranties have to be specific, clear and definite, and must include any exclusions or limitations on scope or duration. Copies are supposed to be given to you when the contractor presents the bid and again when the contract is signed (a manufacturer's own product warranty can be handed over when the product is installed).

That means "we stand behind our work" isn't a warranty. A warranty says what's covered, for how long, and what isn't covered.

Here's ours, as a written workmanship warranty:

• 2 years on all labor.
• 5 years on shower and tub waterproofing and tile we install.
• 5 years on deck structural framing.
• 1 year on caulk, paint touch-ups, and adjustments.

The full terms are in our written contract, and you can read the summary on our warranty page before you ever meet with us.

Two more rules worth knowing

• Permits come first. The regulation says a contractor may not start work until it is sure all required state or local building permits have been issued. Where inspections are required, the contractor must give you copies of the inspection certificates when construction is complete and before final payment is due.
• No final payment before the work is done. It's unlawful under the regulation for a contractor to ask you to sign a certificate of completion or make final payment before the job is completed according to the contract.

How our contract and process line up

Here's what you can expect from RuLee, start to finish:

• A free on-site consultation. I walk every job myself.
• A written, itemized scope, so you can see what's included before you sign.
• Fully insured, with the certificate of insurance provided with the contract.
• Written change orders for every change.
• A written workmanship warranty with specific terms.
• A closeout package at the end: your warranties, lien waivers, and notes from the final walkthrough.

Before you sign with anyone, it's also worth reading our list of red flags when hiring a remodeling contractor in New Jersey.

Questions about a contract?

If you're planning a project and want a contractor who puts everything in writing, call me at 908-370-6506, email info@ruleeconstruction.com, or reach out through our contact page. I'll get back to you within one business day, two at most. You can see the work we do on our services page.

Common questions

Does a NJ home improvement contract have to be in writing?

Yes, if the purchase price is over $500. The contract and every change to its terms must be in writing and signed by all parties, under N.J.S.A. 56:8-151 and N.J.A.C. 13:45A-16.2.

How long do I have to cancel a home improvement contract in New Jersey?

You may cancel for any reason before midnight of the third business day after you receive a copy of the contract. The contract must contain a Notice to Consumer explaining this right.

How do I cancel a NJ home improvement contract?

Send a signed and dated written notice of cancellation by registered or certified mail, return receipt requested, or deliver it personally, to the contractor's address in the contract. Any money you paid must be fully refunded within 30 days of the contractor receiving the notice.

What does NJ law require for contractor warranties?

The contractor must give you a written copy of all warranties on labor, products, or materials. They must be specific, clear and definite, include any exclusions or limitations, and be provided with the bid and again at contract signing.

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About the author. Rui Reis is the owner of RuLee Construction LLC in Roselle Park, NJ, and walks every job himself. NJ Home Improvement Contractor registration 13VH14168400; NJ New Home Builder registration 0058787. More about Rui · Verify our registrations

General information, not legal advice. Last reviewed October 5, 2026.