Praise for N.J. Law on Home Repairs

Posted at 1:06 AM, Jan. 28, 2006

Praise for N.J. Law on Home Repairs

RISMEDIA, Jan. 26 (KRT) If last week's howling winds left you calling for help to repair your property, a new New Jersey law could help prevent you from howling later that you've been ripped off and have nowhere to turn.

Contractors of all sorts, large and small, must now register with the state Division of Consumer Affairs and have $500,000 of liability insurance -- intended to expose shaky and fly-by-night operations.

"This was long overdue," division director Kimberly Ricketts said this week. "People spend the most money on their homes. It's our biggest asset."

Home-improvement contractors typically are the largest source of complaints cataloged by the division. Contractors now must put in writing details of any contract for work in excess of $500. They must also clearly note on the contract that the consumer can cancel it for any reason before midnight of the third day after receiving it. A refund of any money paid is due within 30 days.

The registry allows consumers to verify that a contractor is insured and gives some teeth to their complaints. Unregistered contractors are not allowed to get municipal permits, and they face fines up to $10,000 for a first offense and $20,000 for the second offense, as well as potential criminal penalties.

New Jersey joined at least 36 other states that regulate contractors. Pennsylvania is not one of them, although contractors must be licensed before working in Philadelphia and suburban communities including Springfield in Delaware County and Lower Merion.

Some Pennsylvania officials expressed concern that New Jersey's rules would push shady outfits to their state. It is too soon to see whether that is happening.

Exceptions to the New Jersey law, which took effect Jan. 1, include Home Depot and Lowe's -- though the contractors they hire to send out on jobs must be registered -- and already licensed professionals such as electricians and plumbers.

Tony Saccomanno, who heads Cherry Hill's Department of Code Enforcement and Inspections, cautioned that the rules did not offer blanket protection.

"It's only a registration. There's no requirements other than having insurance," he said. "The fly-by-night is still going to be out there flying by night."

Illegitimate contractors have found a way to avoid registration, which costs $90 initially and $75 for annual renewals, by having the homeowner apply for the permits, Saccomanno said. He said he tried to challenge such homeowners so they understood they were being taken advantage of.

"We have women come in and say, 'I'm going to re-side my house,' " Saccomanno said. "Come on, you're 80 years old. You're not going to do that."

Overall, he said, the registry is "better than nothing... . It's a place to start."

Contractors had to submit applications, including their insurance certification and any criminal convictions, by Dec. 31. A handful have been denied, pending hearings, due to past crimes, Ricketts said.

About 27,000 contractors have applied to register, she said, with 18,000 permits issued. The rest are incomplete or awaiting further review.

The state does not have a good measure of how many still need to apply, Ricketts said. The law covers such contractors as painters, landscapers and remodelers.

Remodeler Ric Malik, owner of Malik Construction in Moorestown, said getting the permit was not a big deal. However, it will take a bit of time, he said, to redo the company's letterheads and business cards and alter signs on trucks to include the registration numbers -- as required by the law.

"This way, they can see that you're registered," Malik said.

The state often has had problems locating contractors who generate complaints, Ricketts said. With files on nearly 27,000 contractors, her office has a lot more information to work with, she said.

"In the event there are consumer complaints filed against these individuals, we'll know where to find them," Ricketts said.

Copyright © 2006, The Philadelphia Inquirer
Distributed by Knight Ridder/Tribune Business News.

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