In New Jersey, contractors are not licensed by the state. But general contractors may be subject to local licensing or permitting, which often requires the purchase of a contractor license bond.
Under New Jersey’s “Little Miller Act,” contractors must purchase both performance bonds and payment bonds before they can undertake a public works or other state-funded project valued above $200,000. While private construction projects don’t fall under the Little Miller Act., private project owners often choose to require performance and payment bonds from their contractors. And both private and state or local government contracting officials may make the purchase of a bid bond by a condition for bidding on a job.
Other construction bonds that contractors operating in New Jersey may need include:
- Maintenance bonds
- Subdivision/site improvement bonds
- Supply bonds
- Solar decommissioning bonds
- Right of Way bonds
