New construction projects may be slowing down slightly in New Jersey as part of a nationwide trend. According to the U.S. Department of Commerce, the first drop in construction spending in six months came in May 2019. While home building projects declined for the fifth month in a row, May marked the first decline in overall construction spending. In May, spending fell by 0.8%, the first drop since a 1.3% decrease in November 2018. Adjusted by season, there was $1.29 trillion spent on construction projects nationwide. However, the May decrease came after a 0.4% jump in further project spending only one month earlier.
A New Jersey construction project is scheduled to begin in 2021. The natural gas-fired power plant will provide additional energy for NJ Transit's train system. The transportation agency expects that the construction project will bee completed over a four-year period. When announcing the project, the agency said that it would lead to over 250 jobs during the construction process as well as 30 permanent jobs in running and operating the plant after it has been completed.
A construction company based in Wood-Ridge, New Jersey has been awarded a contract to handle significant renovations involving Orange High School in the City of Orange. Awarded by the New Jersey Schools Development Authority (SDA), the nearly $40 million project includes an addition to the school's existing structure and an enclosed circulation link bridge that will serve as a connection to a nearby preparatory school.
The construction and building industry in New Jersey is continuing to grow, as one real estate company announced the successful sale of its latest Jersey City luxury complex. Soho Lofts has 377 units in the city directly across from Manhattan; it features ready public transit access to New York and is designed to appeal to professionals with Manhattan jobs. Mac-Cali Realty Corporation, a major player in the New Jersey real estate market, bought the property on behalf of Roseland Residential Trust.
New Jersey residents may have heard that a leading construction company in New York has been selected to lead the $400 million expansion of Resorts World Casino New York City. Plaza Construction will manage phase two of the expansion project underway in Jamaica, Queens. Resorts began building the casino expansion in July 2017, and construction is expected to stretch through 2020. The enlargement will add nearly 500,000 square feet to the gaming property, and the first portion of the new construction is scheduled to open in summer 2019.
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.
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.
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.
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.
News sources report that U.K. manufacturer P.J. Valves has landed a contract for a liquified natural gas contract in New Jersey. The manufacturer will be responsible for building and delivering a number of different types of specialized valves to a major engineering contractor for an LNG modernization project.