Checking that a contractor is registered is step one. The next step is making sure you and the contractor agree about the job. Most basement disputes start with a gap between what the homeowner pictured and what the paperwork says. These questions help close that gap before you sign.

New Jersey also sets legal basics for home improvement contracts, such as contractor registration, required contract contents, and your three-day right to cancel; the Division of Consumer Affairs explains them in its homeowner guide (opens in a new tab).

The Division of Consumer Affairs recommends getting written estimates from at least three contractors (homeowner guide (opens in a new tab)). Then put the answers side by side.

About the scope

  • What exactly is included? Ask for a description of the work in the contract. New Jersey’s contractor practice rules call for a description of the work and the principal products or materials, including name, make, size, and model where applicable (N.J.A.C. 13:45A-16.2 (opens in a new tab)).
  • What is not included? Flooring, paint, trim, lighting, and bathroom fixtures are common places where one proposal assumes more than another.
  • Does the plan address water first? If your basement has ever been damp, ask who evaluated it and how. See Basement Waterproofing vs. Finishing.
  • What goes on the walls and against the concrete? Ask what insulation they plan to use and how it handles moisture.
  • Will you test for radon, or do I need to? Testing and mitigation must be done by NJDEP-certified people unless you work on your own building.
  • Are you planning a bedroom? Ask how the plan meets the emergency escape window and alarm rules.

About permits and inspections

  • Who is pulling the permits? The Division advises giving the town the contractor’s name and registration number if you apply yourself, and not saying you are doing the work if a contractor is. Unregistered contractors will not be issued municipal permits.
  • Is the permit price in the contract, or separate? Get clarity on who pays the town’s fees.
  • Which inspections will be required, and who schedules them? Our guide on basement permits in NJ walks through minor work and full permits.
  • When will I get inspection certificates? Contractor practice rules say inspection certificates must be furnished before final payment, and the Division says final inspections should be completed before final payment.

About the schedule

  • What are the start and completion dates? New Jersey rules call for start and completion dates, or a time period, in the contract. How long a basement takes depends on size, scope, inspections, and scheduling, so rely on the written dates.
  • What happens if the schedule slips? The practice rules make it unlawful to fail to give timely written notice of delays, so ask how delays are communicated.
  • What could change the timeline? Permit review, inspection scheduling, material lead times, and surprises behind walls.

About people and insurance

  • Who will actually do the work? Ask about subcontractors, as the Division suggests, and which trades are done by employees and which by subs.
  • Who is the licensed electrician or plumber? Their names and license numbers go on the permit forms.
  • Can I see the certificate of insurance? A copy must be included with the contract.

About money

  • What is the payment schedule? The Division says not to pay for the entire job upfront, and to be wary of a request for more than a third of the total before work starts. It also warns about demands for cash.
  • Is final payment tied to final inspections? It should be.
  • Will you provide a lien waiver? The Division recommends asking for one.
  • How do changes work? New Jersey requires changes to be in writing and signed. Ask how a change order is priced, who approves it, and how you will see the new total.

About warranties and problems

  • What warranty comes with the work and with the materials? Ask for written copies of all warranties. The practice rules require them to be furnished.
  • Who do I call if something goes wrong after you leave, and how fast will you respond?
  • What happens if I need to cancel? You have a right to cancel before midnight of the third business day after you receive the contract, by written notice.

Red flags

Be careful if you hear any of these: no written contract is needed, no registration number is provided, only a P.O. box is given, cash is demanded, or you are pressured to sign right now. The Division lists several of these in its guide.

Next step

We’re a free referral service. If you want to start a conversation, request contact below. We pass your request along to an independent local contractor in your area; we do not screen or approve contractors, so use these questions before you sign anything.