Client Alert
February 16, 2011
Critical Developments in New Jersey Public Bidding and Construction Lien Law


New Jersey Establishes Process for Bid Withdrawal

By Janesa Urbano, Esq.

Since public bidding began in the State of New Jersey, contractors have had to be especially diligent in the computation and review of their bid packages. This is because New Jersey has remained one of the few states that does not have an established procedure that permits bidders to request a withdrawal of that bid, under certain circumstances. Until recently, if, post bid, a bidder discovered a gross mistake in their bid, they could not rescind the bid without jeopardizing their bonding capacity and/or losing their bid bond.

On January 4, 2011, New Jersey Governor Chris Christie signed S514 (now P.L. 2010, C. 108) into law. The new law goes into effect March 4, 2011 and will permit a bidder, under certain circumstances, to withdraw a bid on a public project due to mistakes in the bid, under the Local Public Contract Law (LPCL).

The rest of this alert, including the procedure and grounds for a bid withdrawal, can be found on our blog.

Janesa Urbano is senior counsel at Cohen Seglias, where she focuses her practice on construction law. Ms. Urbano is a frequent contributor to the firm’s blog, Construction Law Signal. She can be reached at (215) 564-1700 or jurbano@cohenseglias.com.  


New Jersey Construction Lien Law Changes: Protect Your Right to Get Paid

By Jennifer M. Horn, Esq.

New Jersey Governor Chris Christie recently enacted legislation revising the New Jersey Construction Lien Law, which was last amended in 1994. The amendments are effective immediately, and include several significant changes which impact anyone participating in the construction process, including general contractors, subcontractors and suppliers. If you seek to lien a New Jersey property in order to secure payment for the labor and materials you provided, you must understand these changes, which include, but are not limited to, critical timing, definitional and enforcement requirements.

Please be advised that these changes affect only commercial and private projects and have no bearing on the Municipal Mechanic's Lien Law, which pertains only to government projects.

To read the rest of this alert, please visit our blog.   

Jennifer M. Horn is senior counsel in the Construction Group at Cohen Seglias, where she concentrates her practice in the areas of construction litigation and real estate. Additionally, Ms. Horn serves as managing editor of the firm's blog, Construction Law Signal. She can be reached at (215) 564-1700 or jhorn@cohenseglias.com

     
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