On May 18, 2015, The Division of Consumer Affairs published new requirements for registered Home Elevation Contractors (HECs) in New Jersey:
“Once an HEC enters a specific home elevation contract, it is required that the HEC post a payment and performance bond in favor of the homeowner, tenant or other party.”
These new performance bonds stay effective during each home elevation project, from start to finish, covering the total cost, to assure the project’s completion. In the event of disaster, mishaps and other obstacles, it is the responsibility of the Home Elevation Contractor to cover the cost and find replacements if necessary.
“The Division of Consumer Affairs believes that the proposed bonding requirement is essential in order to protect homeowners from loss resulting from a HEC’s failure to complete the elevation job. While the proposed insurance requirements are meant to protect a homeowner’s personal and real property, the purpose of the performance bond requirement is to ensure that the elevation is completed and that any defective work is corrected.”
The regulations have officially changed and all temporary waivers, providing clear and fair notice of these proposed changes, are set to expire on June 17, 2015.