Appellate Division Explains Subcontractors’ Remedies for Non-Payment Under New Jersey Construction Law
Contractors’ Problems With Getting Paid
Our construction attorneys represent New Jersey contractors and subcontractors in construction litigation, arbitration and mediation. One of the things we see over and over again, is that one of construction companies’ biggest worries is that they will perform all the work they
agreed to and then not get paid, despite the fact that they met all the project’s specifications and did a great job. It is a well-founded worry. Companies or people who don’t want to pay devise many different schemes, sometimes claiming defects with the work, delay damages, failure to do proper paperwork, the excuses are as varied as is human imagination. To be clear, sometimes these claims are legitimate, but sometimes they are not, and good contractors need to get paid to do the work and to stay in business.
Fortunately, however, New Jersey construction law provides remedies for these schemes. Recently, the Appellate Division of the Superior Court of New Jersey issued a decision on these construction law remedies in the case of Petric & Associates, Inc. v. CCA Civil, Inc. Although the decision was unpublished, it is important because it explores many of these remedies and lays out a roadmap for subcontractors’ remedies against unscrupulous contractors which don’t want to pay them, particularly some of the trickier issues under New Jersey’s Prompt Payment Act.
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Disputes over construction projects can be costly, time-consuming, complex and unpredictable endeavors. Arbitration is a mechanism often used to avoid these pitfalls by many in New Jersey construction law. Attorneys from our firm have significant experience in litigating and arbitrating construction disputes. One of the most contentious areas is whether a dispute is subject to arbitration or whether it may be litigated in court. Even more complex is trying to figure out which parts, if any, are covered by an arbitration in multi-issue disputes. New Jersey’s courts recently faced just this problem and issued an important precedential decision.
The New Jersey Supreme Court recently issued an important decision in the case of