New Jersey Lawyers BlogAppellate Division Explains Subcontractors’ Remedies for Non-Payment Under New Jersey Construction Law
Contractors’ Problems With Getting Paid
Our construction attorneys represent New Jersey contractors and subcontractors in construction litigation, arbitration and mediation. One of the things we see over and over again, is that one of construction companies’ biggest worries is that they will perform all the work they 
agreed to and then not get paid, despite the fact that they met all the project’s specifications and did a great job. It is a well-founded worry. Companies or people who don’t want to pay devise many different schemes, sometimes claiming defects with the work, delay damages, failure to do proper paperwork, the excuses are as varied as is human imagination. To be clear, sometimes these claims are legitimate, but sometimes they are not, and good contractors need to get paid to do the work and to stay in business.
Fortunately, however, New Jersey construction law provides remedies for these schemes. Recently, the Appellate Division of the Superior Court of New Jersey issued a decision on these construction law remedies in the case of Petric & Associates, Inc. v. CCA Civil, Inc. Although the decision was unpublished, it is important because it explores many of these remedies and lays out a roadmap for subcontractors’ remedies against unscrupulous contractors which don’t want to pay them, particularly some of the trickier issues under New Jersey’s Prompt Payment Act.
into law, the CARES Act has been subject to various interpretations, pitfalls, and continuously-evolving government guidance.
struggling with economic hardships as a result of widespread closures and stay-at-home orders. One major part of these governmental actions includes the passage of the Coronavirus Aid, Relief, and Economic Security Act (also known as the “CARES Act”) on April 2, 2020.
Naturally, this has led to a spike in bankruptcy filings. However, many small businesses have held out hope for federal stimulus aid before deciding on whether bankruptcy is the right option for them.
Since the COV-19 outbreak began, more than 22 million Americans have filed for unemployment. The increase in unemployment filings have been the result of businesses of all sizes being forced to shut down entirely or significantly limit their operations. As a result, many people, both employers and employees, are seeing less income or no income at all while still being expected to pay their monthly payments such as rent, mortgage, car loan, credit card bills, and insurance. These financial obligations are especially devastating for people and businesses that were already having trouble making those monthly payments prior to the COV-19 outbreak.