What are the remedies for failure to pay for construction work?

In New Jersey, a contractor who does not receive payment for their services has a few remedies available. The first remedy is for the contractor to file a lien against the property. This lien gives the contractor a claim against the owner’s property and must be filed within 90 days of completing work. This lien serves as an insurance policy for the contractor, securing payment in the event of nonpayment. The second remedy is for the contractor to bring a lawsuit against the owner for breach of contract. This remedy is available if the contract between the contractor and the owner has been broken. A successful lawsuit could award the contractor damages that could include the full amount originally discussed, costs incurred as a result of the breach, and other costs the contractor may have incurred in the process. Finally, the contractor is entitled to request an involuntary lien foreclosure. If successful, the foreclosure would force the sale of the property. In some cases, the contractor can receive the full amount owed, as long as there is enough money from the sale of the property to cover the unpaid amount. It is important to note that construction law is complicated and the remedies discussed here are general information. It is important for contractors to consult a lawyer to learn what steps they should take if they are not paid for construction work in New Jersey.

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