Unpaid Subcontractor Walks Off the Job and Wins
September 01, 2016 —
John P. Ahlers – Ahlers & Cressman PLLCMake the following inquiry of your constructional lawyer, watch him/her sit up in his/her chair and give your question immediate attention: “I haven’t been paid, can I walk off the job?” The answer to this question is a strong “maybe, but it’s risky.” Walking off the project has a significant downside. The risk is that the judge who reviews your decision, sometimes years after the event, may not agree that the non-payment was a material breach and, thus, suspension of performance (walking off) is not justified.
A breach of contract occurs where, without legal justification, a party fails to perform any promise that forms a whole or part of the contract. Not all breaches are equal. Some failures to perform a promise are “nominal,” “trifling” or “technical.” These breaches do not excuse performance under the contract by the non-breaching party. If the breach is “material,” that is, goes to the essential purpose of the agreement, is a question that only a judge decides, and only after the decision was made as to whether to walk off the job or not. Therefore, before deciding whether to walk off the job, you have to second guess what a judge may decide under the circumstances. Since not all judges see things the same way, the decision is fraught with uncertainty and risk.
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John P. Ahlers, Ahlers & Cressman PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
New Jersey Appellate Decision Reminds Bid Protestors to Take Caution When Determining Where to File an Action
March 13, 2023 —
Brian Glicos & Nicholas J. Zaita - Peckar & Abramson, P.C.On February 21, 2023, the New Jersey Appellate Division held that University Hospital is not a “state administrative agency” and, therefore, the Appellate Division does not have original jurisdiction to determine the merits of an action commenced by an unsuccessful bidder to challenge the award of a contract. In re Protest of Contract for Retail Pharmacy Design, Constr., Start-up & Operation, Request for Proposal No. UH-P20-006, A-1667-20, 2023 WL 2125002 (N.J. Super. Ct. App. Div. Feb. 21, 2023).
Pursuant to Rule 2:2-3(a)(2) of New Jersey’s Rules of Court, final decisions or actions of any state administrative agency or officer may be appealed directly to the Appellate Division as of right. Accordingly, where an unsuccessful bidder chooses to challenge the award of a contract issued by, for example, the New Jersey Department of Transportation, the unsuccessful bidder must file its action directly with the Appellate Division. On the other hand, where an unsuccessful bidder wishes to challenge a contract award made by a local municipality (among a slew of other public entities), the Superior Court Law Division maintains original jurisdiction over the dispute.
Reprinted courtesy of
Brian Glicos, Peckar & Abramson, P.C. and
Nicholas J. Zaita, Peckar & Abramson, P.C.
Mr. Glicos may be contacted at bglicos@pecklaw.com
Mr. Zaita may be contacted at nzaita@pecklaw.com
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ASCE Statement On White House "Accelerating Infrastructure Summit"
October 17, 2022 —
Maria Lehman, President-elect - American Society of Civil Engineers (ASCE)WASHINGTON, D.C. –We thank the Administration for convening the Accelerating Infrastructure Summit, which highlighted the possibilities stemming from the bipartisan infrastructure law. Nearly one full year since it was passed into law, this transformative legislation is beginning to kickstart vital infrastructure projects nationwide that will improve the country's economic efficiency and prioritize public health and safety.
We know that together, builders, engineers, planners, and those entrusted with infrastructure projects must meet the moment and deliver projects on time, on task, and on budget for communities to make the most of these new resources. This generational investment in infrastructure is much needed - the 2021 Report Card for America's Infrastructure assigned the nation's infrastructure a cumulative grade of "C-" across 17 categories of infrastructure.
ASCE is ready to help optimize these investments for communities across the country and make sure all will benefit, whether it is providing contract templates to expedite the process or offering peer support to smaller and rural agencies.
ASCE is also focused on education in our industry to better equip civil engineers with the knowledge and expertise to execute alternative project delivery methods with a March 2023 Construction Institute Summit in St. Louis, which will provide a dedicated track to highlight innovations that help reduce the time for construction projects.
The bipartisan infrastructure law has provided us the opportunity to transform America and bring our infrastructure into the 21st century, and we will need diverse perspectives, innovative technologies and processes, and a robust workforce to make the most of this once-in-a-generation investment.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Water Intrusion Judged Not Related to Construction
October 09, 2013 —
CDJ STAFFA Wisconsin couple has lost their lawsuit against the city of Stoughton. Jerry and Maxine King claimed that construction of the Stoughton Fire Station lead to flooding of their basement. The city conceded that in 2008, the contractor failed to “have in place some of the measures that could have prevented the water from running onto the King property.” The contractor’s insurance company compensated the Kings.
Subsequently, the Kings complained of further water damage. But Matt Dregne, Stoughton’s attorney, said that the Kings “didn’t repair the basement.” The judge in the case dismissed the suit with prejudice, disallowing any further suits from the Kings on these circumstances.
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Zombie Foreclosures Plaguing Various Cities in the U.S.
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFMany homeowners are simply abandoning their homes before banks have completed the foreclosure process, according to USA Today. Banks are not always in a hurry to take ownership of property, and often will wait until they are ready to dispose of it before doing so:
“There are two primary things that can factor into their decision," Eric Eckardt, vice president and general manager of Hubzu.com, told the Mail Tribune. "One, they may have a surplus of REO properties they're trying to move off the balance sheet. The second is, costs associated with foreclosure may be greater than the value. At the end of the day, it's really a case-by-case matter.”
USA Today reported that “[t]he length of the entire foreclosure process is a major contributor to vacancy rates because homeowners are more likely to give up on their homes the longer they have to wait for a resolution.”
These abandoned homes may have a negative impact on sales of neighboring homes, according to the Mail Tribune. Gary Poulos, a retired Harry & David systems engineer, lives next door to a ‘zombie foreclosure,’ and spent a year trying to get maintenance work completed on the neighboring property so that he could be in a position to sell his own. He created a blog about his experience (myneighborchasebank.blogspot.com).
Big Builder analyzed May 2014 data from CoreLogic, and identified the five states with the highest foreclosure inventory: New Jersey, Florida, New York, Hawaii, and Maine. While the five states with the lowest foreclosure inventory were Alaska, Nebraska, North Dakota, Wyoming, and Minnesota.
Read the full story, USA Today...
Read the full story, Big Builder...
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West Coast Casualty’s Construction Defect Seminar Returns to Anaheim May 15th & 16th
February 25, 2014 —
Beverley BevenFlorez-CDJ STAFFThis year will be the twenty-first anniversary of West Coast Casualty’s Construction Defect Seminar, which brings together industry professionals locally as well as internationally. Early registration begins in the evening of Wednesday, May 14th, while the main events take place on May 15th and 16th at the Disneyland Hotel and Resort.
For attendees who wish to explore more of southern California before or after the seminar, you can show your badge and save at many venues including the Warner Bros. VIP Studio Tour, Medieval Times, Pinot Provence, Crossroads at House of Blues, Morton’s Steakhouse, as well as many other establishments.
You may register for the seminar online. They are offering a $50 discount to attendees who register before April 15th.
Download an invitation or register for the event...
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Fewer NYC Construction Deaths as Safety Law Awaits Governor's Signature
July 25, 2022 —
Richard Korman - Engineering News-RecordThe hoped-for progress in New York City construction safety is coming too late for laborer Jose Fortina Armenta Hernandez. At 8:37 a.m. on May 27, 2021, while jackhammering a roof section on a Brooklyn building, the section on which Armenta stood gave way and he fell 60 ft. When last year his family sent his body from New York City to Mexico to be buried, they used a GoFundMe page to raise money for the laborer's funeral.
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Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Boilerplate Contract Language on Permits could cause Problems for Contractors
March 19, 2014 —
Beverley BevenFlorez-CDJ STAFFCraig Martin on his blog Construction Contractor Advisor discusses the potential problems for a contractor that a “boilerplate contract” could cause: “A recent case revealed the problems a contractor had with permits when the contractor’s estimate contemplated an easy permitting process and compliance, but in actuality it was much, much more difficult.”
Martin cites the case Bell/Heery v. United States, where a contractor discovered that the permit process would be much more time-consuming and expensive than originally planned. When Bell/Heery asked for additional funds to cover the additional costs, the “contracting officer rejected the request, finding that Bell/Heery had assumed the risk of the permitting process and it was liable for any costs associated with the permitting process and construction methods required by the permitting process.”
“Bell/Heery appealed to the Court of Claims,” but lost the battle. The contractor had to absorb $7 million in costs to comply with the required permits.
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