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We are supplying material to a company who is reselling for a Super Fund remediation site. Are their any different statutes for this?

New JerseyConstruction Contract Recovery Options

We manufacture pumps and accessories. We have a Distributor who is purchasing material to be used at a Super Fund site. I am not certain who he is selling to ( another contractor or the owner) - but the pumps will be incorporated into skids to be used for remediation purposes. It is in NJ. How can I protect my receivable in this situation?

1 reply

Oct 19, 2017

The general answer is that, in NJ suppliers to suppliers are generally unprotected by either lien rights or the ability to make a claim against a payment bond. And, with federal / Superfund projects, only those who supply materials to the general contractor or to a first tier subcontractor has Miller Act rights. None others, including suppliers to suppliers, have a claim under the Miller Act.

This leaves contractual provisions or other agreements between the parties as the general vehicle through which receivables can be secured; i.e. joint check agreements, personal guarantees, voluntary security interests (such as UCC liens, etc.).

Of course, there is also litigation. Depending on the value of the pumps and accessories small claims may be an option, but it is generally a good idea to hire a lawyer when push comes to shove.

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