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New Jersey construction firm in long-running contract dispute

Business contracts can only work when all parties involved understand and uphold their side of the deal. When the terms of a contract are not abided by, it can be hugely detrimental to the other businesses involved. Furthermore, resolving contract disputes can be a lengthy process, costing valuable time and money for all concerned. In New Jersey, a minority-owned contracting firm has been embroiled in such a dispute since the end of 2012.

The firm has been seeking a payment of $110,000 to cover the work done on the West District Police Precinct in Jersey City. Nothing has been paid since the firm lost its sub-contract for the job after a dispute with the general contractor. Despite the dispute being on numerous City Council meeting agendas with involvement by city officials, the matter has not been resolved and is still ongoing.

In an attempt to either get its money or force legal action, the firm filed a lien, to which the city responded that it had set aside sufficient monies from the bond posted by the general contractor. It is now almost 18 months later, and the sub-contracting firm has yet to receive any monies.

The sheer length of this dispute is a clear demonstration to New Jersey businesses of the importance of contracts being upheld. Drafting a contract that all parties understand and are happy with is an important step. However, sometimes disputes are unavoidable, but this does not mean your business should have to suffer. If you are embroiled in a contract dispute, an attorney may be able to help you resolve the matter and protect the future of your business.

Source:, “Morgan: Minority construction firm deserves payment,” Earl Morgan, April 24, 2014

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