A frequent topic of dispute in litigation involving construction projects is whether a subcontractor is entitled to payment for work it performs outside its contractual scope of work—often referred to as “extra work” or “change order work”—without obtaining a signed written change order to perform the work. The same issue often arises in the context
construction contracts
Contractors, Know Your Contracts!
Last week, New Jersey’s Appellate Division re-affirmed the principle that a court must strictly apply the terms of a construction contract when determining a dispute between contracting parties. Where the contract terms speak directly to the issue in dispute, a court may not employ equitable considerations to determine the dispute even if the court believes…
Subcontractors Take Note – Appellate Division Confirms That Construction Lender Has No Duty To Subcontractor Absent Express Promise To Pay
The New Jersey Appellate Division recently ruled in Vollers Excavating and Construction, Inc. v. Citizens Bank of Pennsylvania, Docket No. A-3844-10T1 (March 5, 2012), that a construction lender has no obligation to pay an unpaid subcontractor on a project when the general contractor files for bankruptcy protection. In Vollers, Vollers was a subcontractor…