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Stay granted for New Jersey Justice Center construction contract

On Behalf of | Aug 8, 2014 | Commercial Litigation |

Terminal Construction Corp. has appealed a decision from a superior court judge that upheld the awarding of a construction contract to build the Bergen County Justice Center given to a rival company. A state appellate judge issued a temporary stay on Aug. 4 for the $66 million contract until he can hear arguments in the commercial litigation dispute. The county originally chose Terminal’s competitor Dobco Construction Services for the project, which includes building a parking garage next to the center.

The state appellate court judge gave Terminal until Aug. 8 to file a motion. The county and Dobco will have until Aug. 13 to reply. However, construction began on the center and the parking garage on Court Street in Hackensack. Work on phase one in ongoing. The project is only part of a larger $147 million project to renovate a century’s old courthouse and to build a Public Works garage on River Street.

Seven companies initially bid on the justice center project with Dobco offering the lowest amount. The company underbid Terminal by $6 million. An architect for the project estimated the job to cost $80 million. In the superior court case, Terminal’s legal team argued that Dobco had put in a defective bid, stating that Dobco listed a subcontractor called Abco Electrical that was effectively a sham business that lacked assets to do the job. The superior court judge disagreed with Terminal’s allegations, citing Abco’s good work on the county’s juvenile detention center and mentioning that Terminal had once solicited Abco’s services.

In cases of commercial litigation, productivity could suffer immensely while disputes sit unresolved. An attorney could help get companies back on track by offering dispute resolution, which is often faster and less expensive than going to court. For cases that cannot be resolved out of court, an attorney could offer customized legal strategies based on New Jersey law to fight for clients’ rights or protect them from unfounded allegations.

Source: North Jersey, “Appeals court blocks $66M Bergen County justice center contract “, John C. Ensslin, August 05, 2014