New Jersey construction contractors and suppliers often have difficulty collecting money due them for their work or supplies. One of the tools available to help ensure payment is including a personal guarantee in their construction contracts. However, personal guarantees have certain requirements. The Appellate Division of the Superior Court of…
Articles Posted in Construction Law
New Jersey Passes Draconian Construction Law Imposing Drastic New Regulations on Home Improvement and Home Elevation Contractors
A recent New Jersey construction law development will greatly affect contractors. The New Jersey Legislature passed a new law regulating home improvement and home elevation contractors, which Governor Murphy signed into law on January 8, 2024. The regulations governing home improvement contracts and home elevation contractors were already draconian, but…
Claims of Negligence by an Engineer in New Jersey Construction Litigation Must be Supported by Expert Opinion in an Affidavit of Merit
New Jersey construction litigation often involves claims against contractors for improper construction or delay. Contractors, in turn, often argue as a defense, counterclaim or cross-claim that any delay or improper construction was the fault of the licensed professional on the project, such as the engineer or the architect. Owners may…
New Jersey Construction Law Decision Examines Role of Good Faith in Construction Contracts
An appellate court recently examined the covenant of good faith and fair dealing in New Jersey construction contracts in the case of Konopka vs. Brown’s Heating, Cooling, Plumbing. Background Konopka hired Brown’s as a contractor to install a Carrier gas furnace in his home. Brown was to supply labor and…
New Jersey Construction Law Decision Examines Prompt Payment Act
One of the most difficult problems in New Jersey construction law for contractors and subcontractors is getting paid. Fortunately, a powerful remedy exists in the New Jersey Prompt Payment Act. A recent appellate court decision examined the New Jersey Prompt Payment Act in the case of Jo-Med Contracting Corp. vs.…
New Jersey Supreme Court Decision on Classification of Workers is a Cautionary Tale for Employers
Independent Contractors versus Employees Under New Jersey Employment Law Under New Jersey employment law, the classification of a worker as an employee or independent contractor has significant ramifications for both the employer and employee, including the ability of the employer to shift the cost of insurance, payroll taxes and benefits…
New Jersey’s Prompt Payment Act is a Potent Tool for Subcontractors Trying to Get Paid, Appellate Division Confirms
New Jersey construction law involves many complex issues. However, one of the most common is also the most basic: Contractors and subcontractors getting paid for their work. The Appellate Division recently issued a published opinion on this topic in the case of JHC Industrial Services, Inc. vs. Centurion Companies, Inc.,…
Appellate Division Enforces Subcontractors’ Right to be Paid in New Jersey Construction Law Decision
The Problem: Getting Paid One of the most important considerations for construction contractors and subcontractors is getting paid for the work they perform. A recent construction law opinion examined some of the issues which contractors and subcontractors face under New Jersey construction law when seeking to get paid for their…
Appellate Decision Explains New Jersey Construction Lien Law
The New Jersey construction law opinion in Site Enterprises Inc. vs. NRG Rema, LLC highlighted several important areas of the New Jersey Construction Lien Law. The New Jersey Construction Lien Law The New Jersey Construction Lien Law replaced the Mechanic’s Lien law, and made it easier for contractors, subcontractors…
Appellate Division Issues Troubling New Jersey Construction Law Decision
The Appellate Division of the State Superior Court recently issued an opinion on New Jersey construction law in the case of In re Protest Of Contract Award For Project A1150-08, N.J. Executive State House Comprehensive Renovation And Restoration which has troubling implications for contractors. The decision is published, so it…