Legal Question in Construction Law in New Jersey

I am a home improvement contract I did an addition for a homeowner with a verbal committment after completing small addition for the owner spent 2 months preparing plans, securing permits which owner signed both plans and permit along with verbally agreeing to the price with the provided contract [ contract balance$11,000.00]. I also supplied materials above and beyond the contract which the owner was to reimberse me for. they have a $25,000.00 balance and are refusing to make final payment on contract and pay for additional materials [ additional meaterials $14,000.00] where do I go from here


Asked on 1/19/10, 6:29 am

2 Answers from Attorneys

Michael Berman Law Offices of Michael A. Berman

You need to either take a mechanics lein or sue them in order to obtain a judgment against them and the property. Call me direct at 215 592 0033 or write back to discuss the options.

Mike Berman

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Answered on 1/24/10, 7:16 am
John Corbett Corbett Law Firm LLC

You have at least four options that should be explored. First, you should engage a lawyer whe does building and construction claims to help you unless you are prepared to lose. A lawyer con't guarantee that your claim will succeed, but can increase your chances greatly unless you are confident in your own legal abilities. Second, if not more than 90 days has expired since the last work was done or materials supplied under the contract, you can put a construction lien on the property. However, under the NJ statutes, you must first file an arbitraction claim because the property is residential. Third, you should pursue both contract and unjust enrichment claims against the homeowner either as part of the arbitration claim or in court. Fourth, you and your lawyer should change your business procedures so that you don't have this problem again. Most construction contracts must be evidenced by writing to be enforced. Unless you stop going business on a handshake basis, it is only a matter of time until you lose a lot of money on a contract. The form that this takes is usually that you lose all your profit, and have to sue for your costs. My firm handles matters of this type. If I can be of further help to you, call or email.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 1/24/10, 4:41 pm


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