Gaglioti Contracting, Inc. v. City of Hoboken

704 A.2d 1301, 307 N.J. Super. 421, 1997 N.J. Super. LEXIS 533
CourtNew Jersey Superior Court Appellate Division
DecidedNovember 17, 1997
StatusPublished
Cited by15 cases

This text of 704 A.2d 1301 (Gaglioti Contracting, Inc. v. City of Hoboken) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gaglioti Contracting, Inc. v. City of Hoboken, 704 A.2d 1301, 307 N.J. Super. 421, 1997 N.J. Super. LEXIS 533 (N.J. Ct. App. 1997).

Opinion

The opinion of the court was delivered by

NEWMAN, J.A.D.

This action arises out of the award of a public contract by defendant City of Hoboken (Hoboken) to defendant La Rocca, Inc. [424]*424(LaRocca), the second lowest bidder, instead of to plaintiff Gaglioti Contracting, Inc. (Gaglioti), the lowest bidder. Hoboken bypassed Gaglioti because of Gaglioti’s failure to submit the names of its subcontractors to be used on the job with its bid documents. Gaglioti appeals. We affirm.

The relevant facts are not in dispute. On August 15, 1996, Hoboken posted a Notice to Bidders soliciting bids for construction of the North Park project in Hoboken. The notice called for the submission of bids no later than October 24,1996.

The project entailed (1) seawall repair, pier removal and replacement, (2) the creation of a public park, complete with a new soccer field and a waterfront pavilion, and (3) a new building. Originally, Hoboken divided the project into the above three components, allowing contractors to bid on one, two or all three segments at their option. Although the project was divided into three sections, the plans and specifications accompanying the notice to bidders were not. One set of plans and specifications existed for all three components of the project.

After Hoboken opened the bids, it at once recognized that its three-component method was too confusing, as each portion of each contractor’s bid varied widely from one contractor to the next. Consequently, Hoboken determined to rebid the project without dividing the tasks. Hoboken’s rebid package, including the plans and specifications, was the same as that for the original bid, except that it called for a “lump sum” bid, and it reduced the cash allowance for unforeseen additional work from $50,000 to $10,000. Rebids were due by December 2,1996.

Hoboken opened the bids at 2:00 p.m. on December 2, 1996. The lowest bidder was Gaglioti, who submitted a bid in the amount of $2,364,800. Hoboken’s engineer called Gaglioti the next morning at 9:30 and informed it that Hoboken would most likely reject its bid because Gaglioti had failed to include a list of subcontractors as required by N.J.S.A. 40A:11-16. At 10:07 a.m., Gaglioti faxed a hand-written list of subcontractors to the engineer, together with the following note:

[425]*425Enclosed is a list of the subcontractors that you requested. Normally, there is a form in the Bidding Package Requirements for this purpose. Since you only informed us at 9:30 a.m. on 12-3-96 we are sending this list to you at 10:07 a.ra. 12-3-96.

The next day, Hoboken’s corporation counsel forwarded a letter to the mayor of Hoboken and the members of the city council, advising them that Gaglioti’s failure to include a list of subcontractors with its bid as required by state law constrained Hoboken to reject Gaglioti’s bid. Counsel was also of the opinion that Hobo-ken could not waive the bidding deficiency, even though it was to Hoboken’s financial advantage to do so. That same evening, the city council passed a resolution adopting the recommendations of the corporation counsel and awarded the contract to La Rocca, who, with a bid of $2,393,347, was the second lowest bidder. La Rocca and Hoboken executed a construction contract pursuant to the bid on December 26,1996.

On December 21, 1996, Gaglioti filed an action in lieu of prerogative writs with an order to show cause returnable on January 10, 1997. In its verified complaint, Gaglioti sought a judgment declaring it the lowest responsible bidder, rescinding any existing contract between Hoboken and La Rocca, and directing Hoboken to contract with Gaglioti for construction of the North Park project. Following argument, Judge Margulies entered final judgment on January 13, 1997 on behalf of Hoboken and La Rocca, stating that his decision was based essentially on Gaglioti’s “non-compliance with the requirement of N.J.S.A. 40A:11-16 that the list of subcontractors be submitted with the bid — and that the requirement is material and nonwaivable [and] the statute is to be rigidly enforced.” (emphasis in original).

I.

On appeal, Gaglioti argues that N.J.S.A. 40A:11-16 does not apply to the North Park project, and it was therefore not required to submit the subcontractors list at the time of its bid.

[426]*426N.J.S.A. 40A.T1-16, hereafter referred to as Section 16, requires that a list of subcontractors be submitted with each bid. That statute provides in pertinent part:

Separate plans for various types of work; bids; contracts
In the preparation of plans and specifications for the erection, alteration or repair of any public building by any contracting unit, when the entire cost of the work will exceed the amount set forth in, or the amount calculated by the Governor pursuant to, section 3 of P.L.1971, c. 198 (C. 40A:ll-3), the architect, engineer or other person preparing the plans and specifications may prepare separate plans and specifications for
(1) The plumbing and gas fitting and all kindred work;
(2) Steam power plants, steam and hot water heating and ventilating apparatus and all kindred work;
(3) Electrical work;
(4) Structural steel and ornamental iron work; and
(5) All other work required for the completion of the project.
The contracting unit or its contracting agent shall advertise for and receive, in the manner provided by law, either (a) separate bids for each of said branches of work, or (b) bids for all the work and materials required to complete the building to be included in a single overall contract, or (c) both. There mil be set forth in the bid the name or names of all subcontractors to whom the bidder will subcontract the furnishing of plumbing and gas fitting, and all kindred work, and of the steam and hot water heating and ventilating apparatus, steam power plants and kindred work, and electrical work, structural steel and ornamental iron work, each of which subcontractors shall be qualified in accordance with this act The contracting unit shall require evidence of performance security to be submitted simultaneously with the list of the subcontractors. Evidence of performance security may be supplied by the bidder on behalf of himself and any or all subcontractors, or by each respective subcontractor, or by any combination thereof which results in evidence of performance security equalling, but in no event exceeding, the total amount bid.
[N.J.S.A 40A:11-16 (emphasis added).]

Gaglioti asserts that it did not have to comply with Section 16 in its bid submission for two reasons. First, it contends that Section 16 does not govern the submission of all bids, but rather concerns only “the preparation of plans and specifications for the erection, alteration or repair of any public building.” Gaglioti argues that the North Park project is not a “public building” under Section 16. Second, Gaglioti maintains that Section 16 is not mandatory in application because it declares that whomever prepares the bid notice may prepare separate plans and specifications. If separate plans and specifications are not created, Gaglio[427]

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Bluebook (online)
704 A.2d 1301, 307 N.J. Super. 421, 1997 N.J. Super. LEXIS 533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gaglioti-contracting-inc-v-city-of-hoboken-njsuperctappdiv-1997.