USA – NEW JERSEY Law and Practice Contributed by: David Freylikhman, Cory Mitchell Gray, David Jensen and Jody Saltzman, Greenberg Traurig LLP
often permitted to make separate claims for moving expenses and, in the case of a ground lease, the value of their leasehold. In addition, a mortgage lender may have rights to foreclose and terminate tenancies. 6.23 Remedies/Damages for Breach In the commercial context, a landlord’s damages are typically identified by category in the lease docu - ments. Generally, a landlord is entitled to back rent, to evict a tenant that has breached the terms of the lease and to enforce any guaranties that were provided in connection with the lease. A commercial landlord is required to attempt to mitigate its damages, but is generally entitled to eviction, back rent, damages to property, attorneys fees and costs, and loss of future rents (although the landlord must attempt to relet the premises in a commercially reasonable manner and is entitled to recover costs of reletting from the breach - ing tenant). In the residential context, a scheme of state laws and regulations governs this area of law, and these should be specifically reviewed for a detailed understanding. In New Jersey, eviction of a tenant and the money damages actions are separate judicial proceedings. Both residential and commercial landlords have rights as to tenant property left in the leased premises, but the rights differ under statute with commercial land - lords not bound by the Abandoned Property Act. Landlords in New Jersey typically hold a security deposit. The form of security differs, as discussed in 6.16 Effect of the Tenant’s Insolvency . Residential landlords have specific statutory obligations as to (among other things) where and how tenant security deposits must be maintained and when the security deposits must be returned to departing tenants. 7. Construction 7.1 Common Structures Used to Price Construction Projects Common pricing models for construction projects include the following. • Fixed price (also sometimes referred to as lump sum or stipulated price).
• Cost plus, either: (a) subject to a guaranteed maximum price; or (b) not subject to a guaranteed maximum price. Construction engagements are not limited to these approaches, and other project delivery models – such as design-build agreements, construction manage - ment agency/multiple-prime, engineering, procure - ment and construction (EPC) agreements, or inte - grated project delivery agreements – are also types of construction agreements that may be used depending on the nature, type and location of the project. 7.2 Assigning Responsibility for the Design and Construction of a Project The responsibility for design is generally assigned to licensed professional architects and/or engineers. These disciplines may either be separately engaged or engaged under the responsibility of the designated architect, developer, design-builder or EPC contrac - tor. Regardless of the approach, there are commonly also other professional disciplines that will be engaged separately, such as those providing geotechnical or environmental site services to assist in the design and engineering considerations for the intended project, among other things. For construction, management of the project is often assigned to a construction manager who is either “at risk”, holding all the contracts for subcontractors, or “not at risk”, meaning that the owner holds all the trade contracts for the work, with the construction manager administering those contracts as the owner’s agent. The responsibilities may also be expanded in the context of a design-build contract or EPC approach; further responsibilities of the construction manager often include certain delegated design-assist and/or limited design-build scope responsibilities, notwith - standing the separate engagement of the architect or other professional disciplines. Owners that elect to use a general contractor may also elect to engage a project manager or other own - er’s representative to assist the owner with project oversight and management.
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