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Bill > S4172


NJ S4172

Limits home improvement contractor from entering into contract with full indemnification provision.


summary

Introduced
11/30/2023
In Committee
11/30/2023
Crossed Over
Passed
Dead
01/08/2024

Introduced Session

2022-2023 Regular Session

Bill Summary

This bill provides that a contractor that is subject to the "Contractors' Registration Act" is prohibited from entering into a contract for full indemnification from a subcontractor. Under the bill, the term contractor includes home improvement contractors and home elevation contractors. The bill prohibits the contractor from entering into a contract with a liability clause between a contractor and a subcontractor for defects or poor workmanship which exceeds 50 percent indemnification. The bill also requires a home improvement contractor who is subject to its provisions to certify, in every home improvement contract for a purchase price in excess of $500, that the contractor will not contract for full indemnification from a subcontractor, and that any liability clause in a contract between a contractor and a subcontractor for defects or poor workmanship will be limited to 50 percent indemnification.

AI Summary

This bill prohibits home improvement contractors and home elevation contractors who are subject to the "Contractors' Registration Act" from entering into contracts that include full indemnification clauses with subcontractors. Instead, the bill limits any liability clause in such contracts to 50% indemnification. Additionally, the bill requires these contractors to certify in home improvement contracts over $500 that they will not contract for full indemnification from a subcontractor. The purpose of these provisions is to prevent home improvement and elevation contractors from passing on all liability for defects or poor workmanship to their subcontractors.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 11/30/2023)

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