7 red flags when hiring a remodeling contractor.
Most bad remodeling experiences don't start with bad work. They start with a bad hire — and the warning signs were usually there before anyone signed. I'm Rui Reis, owner of RuLee Construction in Roselle Park. Here are seven red flags I'd want my own family to watch for when hiring a remodeling contractor in New Jersey, and what to do instead for each one.
1. No registration number
In New Jersey, a business that sells or does home improvement work has to be registered with the Division of Consumer Affairs, and the registration has to be renewed every year. The law also requires registered contractors to prominently display their registration number in their advertising, on contracts and business documents, and on their commercial vehicles (N.J.S.A. 56:8-144). Home improvement registration numbers start with 13VH.
If you can't find a number on the ad, the estimate, or the truck, and the contractor can't give you one, that's a problem. So is a number that comes back Expired: according to the Division, a business that fails to renew is prohibited from selling or making home improvements.
What to do instead: Get the number in writing and look it up yourself on the Division's verification site. Our guide on how to check a NJ contractor's registration walks through every step, using our own number, 13VH14168400, as the example.
2. No written contract
"We don't need all that paperwork" is a red flag on its own. New Jersey law requires every home improvement contract over $500, and every change to it, to be in writing and signed by all parties (N.J.S.A. 56:8-151). The contract must include things like the contractor's legal name, address, and registration number, a copy of their liability insurance certificate, a description of the work and principal materials, the total price, and the start and completion dates (N.J.A.C. 13:45A-16.2).
A vague one-line estimate — "Bathroom remodel, complete" — doesn't tell you what you're getting.
What to do instead: Insist on a written, itemized scope and a full contract before any work starts. That's how we work. Our article on what a NJ home improvement contract must include lists every required item.
3. Asking you to pull the permits
When a contractor suggests that you, the homeowner, go get the building permit "to save time," be careful. Permits and inspections are how the town checks the work, and a contractor who wants to stay out of that process deserves a few more questions.
New Jersey's home improvement regulation puts the burden on the contractor: a contractor may not start work until it's sure all required state or local permits have been issued, and where inspections are required, it must give you copies of the inspection certificates when construction is complete and before final payment is due (N.J.A.C. 13:45A-16.2).
What to do instead: Ask, before signing, who is handling permits and inspections, and get the answer in the contract. Ask for copies of the permits before work begins and the inspection certificates before you make final payment. Requirements vary by job and by town, so if you're unsure, call your local construction office.
4. Big cash demands or most of the money up front
We didn't find a New Jersey rule that sets a specific deposit limit for home improvement contracts, so I won't quote one. But common sense applies: a contractor who wants most of the job paid in cash before any work begins is asking you to carry all of the risk.
What the regulation does say is that it's unlawful for a contractor to ask you to sign a certificate of completion or make final payment before the work is completed according to the contract. It also requires the contract to state the total price, including all finance charges.
What to do instead: Make sure the payment schedule is written into the contract and tied to clear points in the work. Pay in a way that leaves a record. Don't make final payment until the work is finished, you've done a final walkthrough, and you have any required inspection certificates. At the end of our jobs, we hand over a closeout package with your warranties, lien waivers, and final walkthrough notes.
5. No certificate of insurance
Every registered home improvement business in New Jersey must carry commercial general liability insurance of at least $500,000 per occurrence, plus workers' compensation insurance unless exempt by law (N.J.S.A. 56:8-142). And a copy of the liability insurance certificate, with the insurer's phone number, is supposed to be part of the contract.
A contractor who says "I'm covered" but can't produce a certificate is a red flag.
What to do instead: Get the certificate, check that the name matches the business on your contract and that the dates cover your project, and call the insurer if anything looks off. We're fully insured, and the certificate of insurance comes with the contract.
6. Pressure tactics and no cancellation notice
"This price is only good today." "We have materials left over from a job down the street." "We can start tomorrow if you sign now." High pressure is a warning sign, and some of it is specifically addressed in the regulation. It's unlawful for a contractor to deliver materials or start work to pressure you into a contract, or to claim a binding contract exists when no final agreement has been reached. Misrepresenting a "special price" because of leftover materials is also listed as unlawful.
New Jersey also gives you a cooling-off period: you can cancel a home improvement contract for any reason before midnight of the third business day after you receive a copy of it. The contract must contain a conspicuous "Notice to Consumer" explaining that right and how to cancel in writing. A contract without that notice is a red flag.
What to do instead: Take your time. Get the contract, read it at home, and find the Notice to Consumer. A contractor who's confident in their price will still be there tomorrow.
7. A vague or "lifetime" warranty with no terms
"Lifetime warranty" sounds great until you ask: whose lifetime? Covering what? Under N.J.A.C. 13:45A-16.2, a contractor must give you a written copy of all warranties, and they must be specific, clear and definite, including any exclusions or limitations on scope or duration. Copies are supposed to come with the bid and again at contract signing.
What to do instead: Ask for the warranty in writing before you sign, and read what it covers, for how long, and what it excludes. Here's ours: 2 years on all labor; 5 years on shower and tub waterproofing and tile we install; 5 years on deck structural framing; and 1 year on caulk, paint touch-ups, and adjustments. The full terms are in our written contract, and the summary is on our warranty page.
What a good hire looks like
Flip the red flags around and you get a short checklist: an Active registration you've verified yourself, a certificate of insurance, a written and itemized contract with the cancellation notice, permits handled before work starts, payments tied to the work, every change in writing, and a warranty with real terms.
That's how we run every job at RuLee. I walk every job myself, starting with a free on-site consultation, and every change is handled with a written change order. You can see our numbers on our certifications page and the steps we follow on our process page. Our customers have given us 5.0 stars on Google across 6 reviews.
Ready to talk about your project? Call 908-370-6506, email info@ruleeconstruction.com, or use our contact page. I'll get back to you within one business day, two at most.
Common questions
How can I tell if a NJ contractor is properly registered?
Get their registration number (it starts with 13VH) and look it up on the Division of Consumer Affairs verification site. The status should be Active; a business that fails to renew is prohibited from selling or making home improvements.
Is there a legal limit on deposits for home improvement work in New Jersey?
We did not find a NJ rule that sets a specific deposit limit. The regulation does make it unlawful for a contractor to request final payment or a signed completion certificate before the work is completed according to the contract.
Should I pull the building permit for my contractor?
Under N.J.A.C. 13:45A-16.2, a contractor may not start work until it is sure all required permits have been issued, and must give you copies of required inspection certificates before final payment is due. Ask who handles permits before you sign and get it in the contract.
Is a lifetime warranty a good sign?
Only if it's written and has real terms. NJ requires contractor warranties to be in writing, specific, clear and definite, including any exclusions or limitations on scope or duration.
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.