One of the most important considerations for construction contractors and subcontractors is getting paid for the work they perform. A recent construction law opinion examined some of the issues which contractors and subcontractors face under New Jersey construction law when
seeking to get paid for their work.
The Appellate Division of the Superior Court recently issued an opinion illustrating several important points regarding construction liens under the New Jersey Construction Lien Law and collection of payment under the New Jersey Prompt Payment Act.
Background
In that case, Prime Time Construction, LLC vs. Vimco, Incorporated, , Prime Time Construction, LLC was the general contractor on three construction projects in
Paterson. The properties were owned by three limited liability companies which were related to Prime Time. Prime Time executed written subcontracts with Build Logistics, Inc. (“BL”) to do the masonry and excavation work on the projects. BL executed a written contract with Vimco to provide materials for two of the projects. Vimco provided the materials directly to BL; it had no contract with Prime Time or the owners. Prime Time paid BL the full amount under the contract for all the work it performed and materials it provided. However, BL abandoned the project and failed to pay Vimco.
Hi. My name is Rob Chewning. I am one of the attorneys here at McLaughlin & Nardi, LLC, who practices in the field of construction law. We receive a lot of questions about construction liens.
Constructions liens are a way in which to obtain a security interest in a property in which you might be owed money either as a contractors/subcontractor or supplier for a particular construction project. It can be used as a way to compel payment from the contractor if they owe you money if you are a subcontractor, or if you are the general contractor and the owner owes you money, because that security interest will prevent the owner from selling that property without paying the construction lien that you might be able to obtain.
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