Bill
Bill > S2627
NJ S2627
Limits home improvement contractor from entering into contract with full indemnification provision.
summary
Introduced
02/08/2024
02/08/2024
In Committee
02/08/2024
02/08/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 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 a contract with a subcontractor that includes full indemnification or a liability clause that exceeds 50% indemnification. The bill also requires these contractors to certify in home improvement contracts over $500 that they will not contract for full indemnification from a subcontractor and that any liability clause will be limited to 50% indemnification. This is intended to protect homeowners from excessive liability exposure when hiring contractors.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 02/08/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S2627 |
| BillText | https://pub.njleg.gov/Bills/2024/S3000/2627_I1.HTM |
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