Legal Question in Construction Law in New Jersey

Re: Protecting Myself Against Construction Delays

It is rare that a customer is responsible for the construction contract. The contractor presents the construction contract to the homeowner. Then you have it reviewed, and negotiate any changes you want/need.

Here, you need a "time of the essence" clause, which is common. In addition to making sure this clause has sufficiently strong language, you need a "liquidated damages" clause, wherein you specify that should the contractor not make the construction deadline, that damages may be difficult to properly ascertain, and you specify a "per diem" (per day) penalty (designed to cover your actual costs for renting rounded up - perhaps $50 or $100/day)for late completion. (except for acts of God - they will try to insert language reliving the contractor of responsibility for any damages for things beyond th econtractor's control, but this is hard to nail down, so this language is critical or it will be ineffective). You also need provisions for payment with retainage, etc.

I strongly sugest you have an atty help you to review and make changes to the contract, especially if timeliness is a concern for you.

Good luck.

Kevin J. Begley

Re: Protecting Myself Against Construction Delays

You need to make sure that the contract conforms with all of the provisions of the Home Improvement Regulations under the New Jersey Consumer Fraud Act. These regulations cover many of your concerns, such as delays and deadlines. If you would like additional info, please call me at 973-479-5814.