Bill
Bill > A3961
NJ A3961
Limits home improvement contractor from entering into contract with full indemnification provision.
summary
Introduced
03/04/2024
03/04/2024
In Committee
03/04/2024
03/04/2024
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 from entering into contracts that include full indemnification provisions with subcontractors. Instead, the bill limits any liability clause between a contractor and subcontractor for defects or poor workmanship to a maximum of 50% indemnification. The bill also requires home improvement contractors to certify in their contracts that they will not contract for full indemnification from a subcontractor and that any liability clause will be limited to 50% indemnification.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 03/04/2024)
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/A3961 |
| BillText | https://pub.njleg.gov/Bills/2024/A4000/3961_I1.HTM |
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