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Two Options to Get Paid on New Jersey Public Projects

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When a party is unpaid on a public project, the general route to recovery is through filing a bond claim.  Governmental and public entities generally cannot be liened, so security for parties who furnished labor and/or materials to the project is not tied to the land or improvement itself, but rather, to a payment bond that the prime contractor is required to have posted.  It works in a similar manner to the "regular" mechanic's lien, but instead of encumbering the property, a bond claim is a claim on the money represented by the bond itself.  In some senses, a bond claim may even be preferable to a mechanic's lien, as it may not need to be recorded - just delivered.


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Published In: Construction Law Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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