S 2627 New Jersey Senate · 2024-2025 Regular Session

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

This bill prohibits home improvement contractors from requiring subcontractors to cover 100% of liability for defects or poor workmanship in contracts. It limits such liability clauses to a maximum of 50% indemnification. Contractors must certify in writing (for contracts over $500) that they will not seek full indemnification from subcontractors. The law directly affects contractors and subcontractors in home improvement projects, ensuring homeowners are not left fully responsible for contractor or subcontractor errors. It amends existing law to clarify that contractors cannot shift all financial risk to subcontractors for work quality issues.
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2024
Committee Review
Floor Vote
Governor
Introduced Feb 8, 2024 Last action Feb 8, 2024
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Feb 8, 2024
Introduced
Introduced in the Senate, Referred to Senate Commerce Committee
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Brian Stack
Brian Stack
DDemocratic
NJ
33