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New Jersey & New York Construction Law Blog

Construction contract dispute resolution options

Disputes related to construction contracts or projects in New Jersey might arise because of a lack of understanding of the contract's conditions, a failure to properly administer the terms of the contract or for a range of other reasons. No matter what causes them, contract disputes can be time-consuming and damaging to the relationship between the parties. Contractors and project owners can reduce the chance that disputes will arise by carefully drafting the relevant contracts and paying particular attention to the dispute resolution clause.

Among the options that should be considered when planning for dispute resolution are mediation, negotiation, expert determination, adjudication, arbitration and litigation. Mediation is a process by which a neutral third party is brought in to resolve the dispute. It's not legally binding, but it might bring the parties to an agreement. Negotiation means the parties attempt to work out the issues among themselves before they move on to other methods of resolution. Expert determination is similar to mediation as a third-party expert is tasked with resolving the dispute.

New Jersey construction projects on the rise

Construction in New Jersey is on the rise, according to state reports. Among some of the major projects currently underway in Trenton are a new tax agency building, a new health care project and renovations in the State House. The latter project is a significant, 4-year undertaking that is currently engaged in asbestos remediation. The state treasury department is projecting $1 billion in public spending on projects in the capital alone over the coming years, a higher rate of investment than in recent years.

State treasury spokespeople noted that bond funds were approved for several construction initiatives and that federal funding from the Department of Housing and Urban Development had also been secured. Furthermore, they noted that the state was working to improve energy efficiency and upgrade infrastructure in multiple locations after obtaining a line of credit. The numbers were revealed at a New Jersey Alliance for Action seminar focused on upcoming construction projects in the state. The group's president noted that upticks in construction work are often reflective of overall economic improvement.

Dealing with a zoning violation ordinance

Whether you're building a house or a business in Maryland, there are several different codes, regulations and statutes that you may need to consider before laying down your foundation. However, construction codes can often be confusing and difficult to navigate. You may be served with a violation without ever being aware that there was an issue. If you find yourself in this situation, our attorneys at Skolnick Legal Group, P.C. can help.

As a property owner, you may find yourself facing violations for electrical codes, fire codes, plumbing codes, zoning violations and more. You may be asked to pay fines or make alterations to your building. However, you may be able to appeal these notices or get a variance, and we can help you go through the process.

Understanding the Right to Rescind in construction contracts

Construction can be a difficult thing to get the timing down for. You have a lot of moving pieces coming together, and any snag can throw a job’s progress off by weeks or months.

The costs associated with construction jobs means that contracts need to be binding. Getting out of one is a difficult proposition for homeowners. There are a few exceptions to this, including:

Construction contract payment terms vary

In New Jersey building projects, the construction contract is a binding agreement between the builder and the owner. This contract is designed to control how the job will be performed and how the builder will be compensated. The type of construction contract involved is usually defined by the way disbursements will be made and by other specific details. The four most common types of construction contract are fixed price, unit pricing, time and material and cost plus.

In a fixed-price contract, also sometimes referred to as a lump-sum contract, one price is included to cover all activities related to construction. These documents might include benefits or incentives for early completion along with liquidated damages for not finishing on time. A fixed-price contract might be advised when the project has an agreed-upon scope and schedule. It transfers project risk to the builder.

Construction underway at New Providence's first craft brewery

Craft beer enthusiasts in the New Jersey borough of New Providence won't have far to travel to quench their thirst when a new brewery and tasting room opens. Consisting of a husband and wife and their cousin, the team behind the independently owned company plans to present a wide selection of uniquely prepared craft brews. The building, which will include a tasting room, is now under construction on Spring Street.

The brewery's owners hope to cultivate a loyal craft beer community in the New Jersey-New York area around New Providence by offering selections that include hazy and hoppy India pale ales (IPAs), lagers, sour and barrel-aged beers and session ales. The process of bringing this brewery and tasting room to New Providence began with approval by the town's planning board. This was followed by the issuance of a brewers notice and approval of the initial construction permits.

Hoboken luxury development receives funding

A new luxury residential building is going up in Hoboken after the New Jersey project secured a $64 million construction loan from Bank OZK. Called the Wonder Lofts, the project is being organized by real estate investors including Angelo Gordon, Prism Capital Partners and Parkwood Development Corp. When completed, the building will have 89 residential units as well as retail space on Hoboken's popular Clinton Street. The complex will also include a gym, pool, party room, roof deck, grill station and chef's kitchen as part of 10,000 square feet in amenity space.

The project will be constructed on a former industrial site in the city on the Hudson River. Construction and real estate projects in Hoboken have found a strong market with the city's proximity and ease of access to Manhattan as well as its historic buildings and prime retail and dining locations. As a result of the construction loan, the developers announced that the project is fully capitalized, allowing work to be completed. The former industrial site has already been the location of ongoing work to prepare for its renovation into a modern, luxurious residential property. The developers have already completed interior demolition at the property.

Construction liens and subcontractors

Perhaps you are a subcontractor, and another business hired you to replace the sheet-rock in a commercial building in New Jersey. Although you completed all required work listed in your original contract, you fail to receive payment from your partner company. To obtain your required payment, you may need to file a lien against your partnering company, so that the company is reminded that it is legally bound to your contract pay requirement.

Contractors' liens aid in helping contractors and subcontractors receive their correct compensation for their work. Following specific steps in filing a construction lien gives you the opportunity to quickly receive your owed payment. Attorneys help substantially when dealing with construction disputes, and when an issue arises between contractors and subcontractors, an attorney can determine the right course of action for you to receive your deserved compensation. If you complete your construction project but do not receive payment, filing a construction lien with the help of an attorney reimburse you for your owed payments.

When will subcontractors be liable for construction defects?

If you are working as a subcontractor in the construction industry in New Jersey, it is likely that at some point in time you will deal with a construction defect claim from a homeowner. These cases occur when a homeowner finds a defect within the construction of their home and wants to pursue litigation.

Construction defect cases are one of the most common claims for litigation due to the broad spectrum of problems that can occur when building. It is beneficial to know the different types of defects in order to determine who is liable. 

Know the seven most common types of construction defects

Construction defects can be a nightmare for construction firms, contractors and property owners. Whether the defect was the result of deficient materials, substandard work quality or deviating from architectural plans, multiple parties must usually spend significant time and money trying to resolve the defects.

Recently, Builder and Developer Magazine identified the seven areas where defects are most common in the construction field. Builders and other parties should be aware of the most common types of construction defects, so that they can recognize and prevent them. Let’s examine the seven defects most common in the construction industry.

Contact Our Construction Law Team Today

We invite you to contact us to schedule a free initial phone consultation today at one of our three office locations. Feel free to call or send our office an email.

Roseland 973-403-0100 | Hackensack 201-430-2400 | New York 212-744-9600

We also handle personal injury matters, and frequently resolve commercial and real estate disputes.

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Roseland, NJ 07068

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