Skolnick Legal Group, P.C.Skolnick Legal Group, P.C.2026-10-22T15:54:49Zhttps://www.skolnicklegalgroup.com/feed/atom/WordPress/wp-content/uploads/sites/1203553/2023/06/cropped-SkolnickLegalGroup_SITEICON_512x512_JUN23-32x32.jpgOn Behalf of Skolnick Legal Group, P.C.<![CDATA[Residential vs. commercial construction liens in New Jersey: key differences]]>https://www.skolnicklegalgroup.com/?p=489562026-10-14T03:33:48Z2026-10-14T03:33:48ZFiling deadlines
The first major distinction involves timing. On commercial projects, contractors, subcontractors, and suppliers have 90 days from the date the last work, services, or materials were delivered to file a lien claim directly with the county clerk. On residential projects, the final lien claim must still be filed within 120 days of last work, but the process before that filing is more involved and cannot be skipped.
Mandatory arbitration for residential liens
New Jersey law imposes consumer protections for residential property owners that add required steps before a lien can be recorded. A contractor seeking to lien a residential property must first file a Notice of Unpaid Balance and Right to File Lien, known as a NUB. The residential lien process requires these steps in order:
File the NUB with the county clerk within 60 days of the last date work or materials were provided
Serve the NUB on the property owner and primary contractor within 10 business days of filing
File a demand for expedited arbitration with the American Arbitration Association simultaneously with the NUB filing
Receive a favorable arbitration determination, which must be completed within 30 days
Record the actual lien claim within the overall 120-day statutory window
On commercial projects, no NUB or arbitration is required. Contractors proceed directly to recording the lien within 90 days.
Lien fund calculation
The maximum enforceable lien amount is also calculated differently. On commercial projects, the lien cannot exceed the unearned balance of the prime contract at the time the lien is filed. On residential projects, the lien fund is capped by the unpaid balance of the prime contract at the time the owner receives written notice of the NUB. If the homeowner paid the primary contractor in full before receiving NUB notice, a subcontractor's lien fund may be effectively zero.
Consequences of filing incorrectly
Filing a commercial lien on a residential project, or missing the 60-day NUB deadline, violates the New Jersey Construction Lien Law. A procedurally improper or exaggerated lien can result in court sanctions, forfeiture of lien rights, and liability for the property owner's attorney fees.
Protecting your payment rights
Because the procedural windows run quickly, identifying the correct property classification and acting promptly when payment stalls is essential. Contact a New Jersey construction lien attorney who can help ensure your lien rights are properly preserved before a deadline passes.]]>by Skolnick Legal Group, P.C.<![CDATA[What happens when you miss a construction lien deadline?]]>https://www.skolnicklegalgroup.com/?p=489512026-09-21T19:09:23Z2026-09-21T19:09:23ZWhat rights do you lose right away?
Under N.J.S.A. 2A:44A-6, New Jersey law generally gives contractors and suppliers 90 days from their last work, service, material or equipment delivery to file a mechanic’s lien claim.
Missing that window typically costs you three key protections:
Your right to assert a lien against the property: Without a recorded lien, you have no statutory claim directly tied to the real estate where your work was performed.
Your lien-based priority in foreclosure actions: A properly filed lien may have priority over certain mortgage lenders and secured claimants, depending on when construction work first began on the project.
Your lien-based protection in bankruptcy proceedings: A recorded lien can elevate your claim above those of unsecured creditors. Without one, you typically stand alongside general unsecured claimants.
Deadlines and procedures depend on the party’s role and type of work. Real estate taxes, municipal assessments and some mortgages may take priority over construction liens, regardless of filing date. Bankruptcy and foreclosure outcomes depend on the facts and timing of each case.
Are there other collection options available?
A breach of contract claim may apply if a valid agreement exists, the required work was completed and the owner failed to pay. Courts may award damages, but recovery depends on the debtor’s assets. Payment bond claims may also apply. State law bars mechanic’s liens against government property on public construction projects.
New Jersey's Little Miller Act (N.J.S.A. 2A:44-143 et seq.) requires payment bonds for state and local public contracts over $100,000. As a subcontractor or supplier, you can claim against the bond instead of placing a lien on the property. The federal Miller Act (40 U.S.C. §§ 3131–3134) sets similar requirements for federal projects.
On private projects, payment bonds are not required by statute but may be required by contract. If a bond exists, both bond and lien rights may apply. Bond claims have separate notice requirements and deadlines that you will need to track independently.
What to do after missing a construction lien deadline
Missing a construction lien deadline removes the most direct way to secure payment against the property. A breach of contract or payment bond claim may still be available, depending on the circumstances. Each claim has its own deadline. A New Jersey construction attorney can assess which options remain and what steps must be taken before those deadlines expire.
]]>On Behalf of Skolnick Legal Group, P.C.<![CDATA[What should be included in a construction change order?]]>https://www.skolnicklegalgroup.com/?p=489492026-09-14T10:43:05Z2026-09-14T10:43:05ZWhy a written change order matters
Many construction contracts require written change orders, and clear documentation can help avoid disputes about scope and price. Without a written record, contractors may have trouble proving extra work and owners may face unexpected costs.
In New Jersey construction projects, written change orders are especially important when extra work, delays or payment disputes come up. A clear change order demonstrates that both sides agreed to the change and clarifies the work the contract includes.
What a change order should include
A complete change order should cover the main details of the change:
A clear description of the work being changed, with a reference to the original contract
A clear explanation of what is changing
A cost adjustment for labor, materials and related expenses
Signatures from both parties confirming the change before work begins
These details make it easier to track the change and reduce later disputes.
How to handle schedule changes
If the change affects the timeline, the change order should say so. It should also explain how many days the work will add to the completion date and list the revised deadline.
In New Jersey construction projects, schedule changes can also affect delay claims and payment disputes, so it is important to document any extension of time in writing.
Keeping your project on track
Clear change orders can help keep a project organized when plans shift. In New Jersey, careful documentation is especially important if the project is large, the contract language is unclear or the change could affect payment or completion deadlines. If the wording is unclear, legal review may help before the extra work begins.]]>On Behalf of Skolnick Legal Group, P.C.<![CDATA[Made a mistake on your bid? Can you fix it in New Jersey?]]>https://www.skolnicklegalgroup.com/?p=489482026-09-02T16:33:22Z2026-09-02T16:33:22ZEvery construction bid involves dozens of numbers pulled together under a tight deadline. Contractors juggle quotes from subcontractors, material costs and labor estimates, often finalizing everything in the final hours before submission. With that much information moving at once, an error can slip through unnoticed until after the bid goes in. In New Jersey, the law gives contractors a way to withdraw or fix a bid in some cases. However, its success depends on how fast you act and whether the project is public or private.
What counts as a bid mistake
Not every regret qualifies as a legal mistake. Courts and public agencies generally look for a clerical or mathematical error rather than a change of heart about pricing or scope. Examples include a transposed number, a missing labor cost or an accidental omission of a major material. If a contractor simply underestimated the market or wants better terms, that usually won't support a withdrawal request.
Can you withdraw or correct the bid
Under New Jersey’s Local Public Contracts Law, a public works bidder may request to withdraw a mistaken bid within five business days of bid opening by submitting written proof that enforcing the bid would be unconscionable and that the error occurred despite exercising reasonable care. Waiting too long or trying to fix the error after losing the bid usually won't work. Private contracts follow the terms of the bid documents and any applicable case law, so the outcome can vary more from project to project.
Talking with an attorney
Bid mistakes carry real financial stakes, and the deadlines for raising them move fast. If you're unsure where you stand after finding an error, a short conversation with a construction attorney can bring some clarity. An attorney who knows New Jersey construction and bidding law can review the paperwork, help gather the right proof and explain what options actually apply to your situation. Getting that kind of guidance early, before a deadline passes, often makes the difference between resolving the issue calmly and losing a bond or facing a dispute. ]]>On Behalf of Skolnick Legal Group, P.C.<![CDATA[What are your rights when a contractor abandons your project?]]>https://www.skolnicklegalgroup.com/?p=489462026-08-21T13:08:09Z2026-08-21T13:08:09ZDoes abandonment constitute a contract breach?
When a contractor stops work without justification, this typically represents a breach of contract. The original contract sets out the obligations each party must fulfill. Courts typically examine how long the contractor was inactive and whether the contractor's actions – such as failing to return calls or removing equipment from the site – suggest an intent to abandon the project.
What evidence should you preserve right away?
Evidence to preserve when a contractor abandons your project:
Photographs of incomplete or defective work
All written communications, including text messages and emails
A detailed log of all payments made, including dates and amounts
The original contract and any written change orders
Invoices, receipts and any other financial records related to the project
The stronger your documentation, the better positioned you will be to support a claim for what you lost.
What recovery options does state law allow?
Property owners may pursue damages for incomplete work, costs to hire replacement contractors, and expenses from project delays. Recovery through contract claims often includes the difference between the original contract price and the actual cost to complete the work. In some cases, New Jersey's Consumer Fraud Act may also apply to contractor disputes, and claims under that law can result in treble damages and reimbursement of attorney fees.
Homeowners may also file a complaint with the New Jersey Division of Consumer Affairs, which can investigate registered contractors and impose disciplinary action – including fines or suspension of their registration. Filing a complaint will not result in direct financial compensation, but you can pursue it alongside a separate legal claim.
What should you do first after a contractor abandons your project?
New Jersey's statute of limitations for breach of contract and Consumer Fraud Act claims is generally six years. While that window may seem long, evidence of incomplete work, contractor communications and project records is often most reliable when gathered immediately after the abandonment.
Photograph the unfinished work and save every communication while the details are still fresh. The law gives you several ways to pursue your losses – but the strength of your claim comes down to what you have documented.]]>On Behalf of Skolnick Legal Group, P.C.<![CDATA[What are liquidated damages in a New Jersey contract?]]>https://www.skolnicklegalgroup.com/?p=489332026-08-11T15:36:17Z2026-08-11T15:36:17ZHow liquidated damages work
Liquidated damages are an amount that the parties agree to in advance for a specific type of breach. Construction contracts often use these provisions when a financial loss would be difficult to calculate after a breach.
For example, a contract may require a contractor to pay a set amount for each day a project remains unfinished after the agreed completion date. The clause should reflect a reasonable estimate of the expected loss rather than punish the contractor.
The reason for the delay can also matter. A contractor may have rights under the contract when circumstances outside the contractor's control affect the schedule.
When a clause may be enforceable
New Jersey courts generally look at whether the amount makes sense in relation to the harm the breach could cause. Courts can consider the circumstances surrounding the agreement and the losses involved. A provision that imposes an excessive amount as punishment may not hold up.
For construction companies, the wording and purpose of the clause matter. A contractor should understand when the payment applies, how the amount is calculated and whether the contract provides exceptions.
For public construction projects, New Jersey law also permits certain contracts to include liquidated damages. Those contracts can contain specific rules concerning delays and the contractor's remedies. Reviewing the clause carefully can help avoid disputes later.
What contractors should check
Before signing a construction contract, contractors should pay attention to:
The event that triggers liquidated damages
The amount charged and how it accumulates
Any stated exceptions or extensions
Provisions addressing owner-caused delays
How the contract defines substantial completion
These details can affect the financial impact of a delay.
A liquidated damages clause can provide greater certainty when a construction project encounters a breach. However, New Jersey law does not automatically enforce every amount written into a contract. The provision must remain reasonable in light of the circumstances. Understanding the clause before signing can help contractors and owners better assess their contractual obligations.]]>On Behalf of Skolnick Legal Group, P.C.<![CDATA[What is an excusable delay in construction?]]>https://www.skolnicklegalgroup.com/?p=489322026-07-26T16:00:36Z2026-07-26T16:00:36ZIssues with missed deadlines are common in the construction industry. Certain deadlines will be written into the initial contract, and the project is expected to be completed by these deadlines. If the contractor misses the deadline, it can sometimes lead to litigation, especially if it causes financial harm to the property owner – such as a business owner who cannot open on time.
However, excusable delays are those that are not the responsibility of the contractor in the first place. They are outside of the contractor's control.
Actions carried out by the property owner
For instance, the property owner themselves may need to take certain actions. Perhaps they need to approve drawings and designs. Maybe they need to carry out an inspection on time so that the project can move forward. Perhaps the property owner has agreed to purchase the parts and materials for the construction company, but they failed to purchase them or failed to have them delivered on time, so the project runs behind schedule.
Weather events
In some cases, unforeseen weather events can also be considered excusable delays. This is especially true when they deviate from expected weather patterns in the area. If there is localized flooding or a severe storm, for instance, the project may not be able to continue as scheduled. It could run days or even weeks behind.
Disputes over excusable delays
As you can imagine, there are often disputes where a contractor will claim that an excusable delay caused them to miss the deadline and that they do not bear responsibility, but the property owner alleges that the contract has been breached. When these disputes arise, it is important for the parties involved to understand their legal options.
]]>On Behalf of Skolnick Legal Group, P.C.<![CDATA[Who is responsible for a latent construction defect?]]>https://www.skolnicklegalgroup.com/?p=489312026-07-17T14:15:27Z2026-07-17T14:15:27ZProperty owners may claim that a contractor or subcontractor is responsible for a latent construction defect. This is a hidden defect that may only be discovered months or even years after the project has been completed.Determining liability can become complicated specifically because there is this delay. If a homeowner discovers an alleged mistake a year after the job is concluded, the contractor may claim that the defect simply did not exist while they were working on the project. They did everything correctly and up to code.They may believe that the homeowner caused the issue themselves or that they hired someone else, such as a local handyman, to work on the property. The homeowner, on the other hand, may contend that the defect was there the entire time but simply was not noticed earlier.
Addressing patent defects
The opposite is known as a patent defect, which is something that people will recognize relatively quickly. A homeowner may arrive and find out that the subcontractor who was hired to put in the cabinets installed them in the wrong room or installed the wrong type of cabinets entirely. They can immediately identify the issue, and steps can be taken to rectify it.Latent defects are not necessarily hidden intentionally, but could simply be things like structural issues, problems with plumbing or electrical lines, or other defects that are hidden in the walls of the home. That is what creates the delay when compared to a patent defect claim, and it can certainly complicate the process.For construction company owners, contractors, subcontractors and other professionals working in the space, it is very important to understand how defect claims work and what legal steps to take to address them.
]]>On Behalf of Skolnick Legal Group, P.C.<![CDATA[Was your construction bid disqualified over a minor mistake?]]>https://www.skolnicklegalgroup.com/?p=489302026-07-08T16:10:20Z2026-07-08T16:10:20ZCompliance standards for public bids
The Local Public Contracts Law sets the rules for construction projects awarded by counties, municipalities and local authorities. When a project exceeds the bid threshold, these agencies must advertise the work publicly, accept sealed bids and award the contract to the lowest responsible bidder.
The bid documents explain what you must include with your proposal. The purchasing agency compares your paperwork with the project specifications, required forms and any addenda. State law also requires bid security, a surety's consent to furnish a performance bond, an ownership disclosure statement and a subcontractor list for certain trades.
If your bid packet lacks certain requirements, the public entity must reject it under state law. Other issues will depend on the facts of your application.
Material errors versus waivable defects
Not every mistake leads to disqualification. New Jersey courts use a two-part test to decide whether an error is serious enough to reject your submission or minor enough for the contracting unit to overlook.
One question is whether excusing the mistake would reduce the agency's confidence that you can complete the project as required. The other is whether correcting the error would give you an unfair advantage over the other bidders.
For example, failing to acknowledge an addendum that changed the project scope could allow you to decide after the agency opens the bids if you still want to move forward at your quoted price. By contrast, the contracting unit may correct a simple math error when the unit prices are clear and doing so does not change your offer.
Legal options after disqualification
You may be able to challenge the decision by filing a written protest before the contract is awarded. It should identify the issue and explain why the contracting unit incorrectly treated a minor mistake as a material defect or otherwise misapplied the bidding requirements.
If the protest fails, you can seek judicial review by filing an action in lieu of prerogative writs in Superior Court. While court rules generally provide up to 45 days to file, acting sooner may be important because the contract could be awarded before that deadline expires.]]>On Behalf of Skolnick Legal Group, P.C.<![CDATA[How are contractors paid?]]>https://www.skolnicklegalgroup.com/?p=489282026-07-06T23:55:28Z2026-07-06T23:55:28Zcost-plus contracts. They keep a record of their actual costs, such as materials and labor hours, and establish fees to allow the construction company to make a profit on the job. This is a relatively transparent payment model, where both sides know exactly why compensation is being provided, but it does mean there could be some flexibility in the total cost of the project.
Another option is a fixed-fee contract. There is not any flexibility when it comes to payment, as there is a predetermined price for the project. The contractor agrees to do the entire job for a set amount of money. That means both sides need to run the numbers in advance to see what type of payment is appropriate since it cannot be changed.
The importance of detailed contracts
Having a detailed contract can help ensure that all parties are aware of their financial obligations and responsibilities upfront. This helps to avoid miscommunication.
For instance, if a general contractor believes that the client is going to cover the cost of parts and materials, but the client thinks that the contractor is going to purchase them and has built that cost into their price, there can be significant conflicts. Addressing this upfront can help avoid them.
That said, disputes or conflicts over contractual obligations are common in this industry. It is important for those involved to understand exactly what legal steps to take if there is a dispute.]]>