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New Jersey Appellate Division Upholds Rejection of Bid Where Contractor’s Proposed Price Suggested That Contractor May Fail to Comply with the New Jersey’s Prevailing Wage Act Requirement
Summary The New Jersey Appellate Division recently affirmed the rejection of a low bidder’s bid because the proposed prices were inconsistent with the solicitation’s mandate that submitted bids comply with the New Jersey Prevailing Wage Act. Sal Elec. Co. v. Plainfield Bd. of Educ., 2020 N.J. Super....
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New Jersey’s Appellate Division Upholds The Reversal of a Public Owner’s Awarding Decision Because the Standards Were Applied Inconsistently
Summary The Appellate Division recently held that public owners must evaluate responsive bids consistently and by the same standards. Pact Two, LLC v. Twp. of Hamilton, 2020 N.J. Super. Unpub. LEXIS 701 (App. Div. Apr. 20, 2020). When a public owner does not abide by these principles,...
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New Jersey Appellate Division Upholds Decision Requiring Strict Compliance With Contractual Notice and Opportunity to Cure Provisions
On January 31, 2020, the New Jersey Appellate Division affirmed the trial court’s rejection of a general contractor’s claim for deficiencies against a subcontractor because the general contractor failed to strictly comply with the contractual notice and opportunity to cure provision of the subcontract. Cnj Constr. Corp....
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New Jersey Appellate Division Upholds Decision Requiring Public Owner to Waive a Bid Defect Related to a Mandatory Document
Yesterday, the New Jersey Appellate Division affirmed the rejection of a public owner’s award of a $7.2 million contract on the basis that the public owner should have waived the defect associated with a mandatory document in the lowest bidder’s response to the solicitation. Thassian Mech. Contr....
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Enforceability of Contractual Provisions in New Jersey and New York: Indemnification Provisions
Construction contracts frequently contain indemnification provisions. These clauses are often the subject of litigation because they seek to transfer or assign liability arising from identified claims from one party to another. New Jersey and New York courts generally enforce these clauses provided they comply with each state’s...
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The Impact of the Coronavirus on the Construction Industry – Force Majeure Clauses Likely to take Centerstage
On March 11, 2020, the World Health Organization declared the Coronavirus a global pandemic. Panic has ensued, states of emergency have been declared, international travel has been restricted, major sporting events and mass public gatherings have been cancelled, and employers have directed their employees to work from...
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Enforceability of Contractual Provisions in New Jersey and New York: “Liquidated Damages”
Construction contracts often contain liquidated damages clauses. These clauses allow parties to limit or quantify their exposure by stipulating in advance to the amount of damages available in the event of a breach. Liquidated damages clauses are generally enforceable provided, however, the stipulated amount represents a good...
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Enforceability of Contractual Provisions in New Jersey and New York: “Pay-if-Paid”
Construction subcontracts often contain “pay-if-paid” provisions. The intended purpose of these clauses is to condition a contractor’s obligation to pay its subcontractor upon the contractor’s receipt of payment from the entity with whom it is in privity. Some jurisdictions, like New Jersey, generally enforce “pay-if-paid” clauses if...
