R.C.G. Construction Co. v. Mayor of Keyport

786 A.2d 895, 346 N.J. Super. 58, 2001 N.J. Super. LEXIS 462
CourtNew Jersey Superior Court Appellate Division
DecidedDecember 20, 2001
StatusPublished
Cited by3 cases

This text of 786 A.2d 895 (R.C.G. Construction Co. v. Mayor of Keyport) 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
R.C.G. Construction Co. v. Mayor of Keyport, 786 A.2d 895, 346 N.J. Super. 58, 2001 N.J. Super. LEXIS 462 (N.J. Ct. App. 2001).

Opinions

The opinion of the court was delivered by

HAVEY, P.J.A.D.

This is a public bidding case.1 The Public Works Contractor Registration Act (PWCRA), L. 1999, c. 238, became effective on [61]*61April 11, 2000. N.J.S.A 34:11-56.48 to -57. It provides that “no contractor shall bid on or engage in any contract for public work ... unless the contractor is registered pursuant to this act.” N.J.S.A 34:11-56.51 (§ 56.51). The definition of “[e]ontractor” includes “any subcontractor or lower tier subcontractor of a contractor as defined herein. . . .” N.J.S.A. 34:11-56.50.

In this case, the trial court interpreted § 56.51 as requiring the contractor and all subcontractors who will work on the job to be registered before the contractor submits its bid proposal to the public entity. The court therefore vacated an award of a contract by defendant Borough of Keyport to defendant A & K Excavating, L.L.C. (A & K) because A & K’s steel structure subcontractor, D.L. Zagata, Inc. (Zagata), was not registered when A & K submitted its bid. We reverse. We hold that under § 56.51, a subcontractor is required to register before it begins performing work on the project, not before the general contractor submits its bid proposal. The matter is remanded with direction that Key-port award the contract to A & K.

On August 1, 2000, the Borough of Keyport solicited public bids for the construction of a new municipal building complex. The bid advertisement provided that “[bidders are required to comply with the requirements of ... P.L.1999, c. 238, ‘The Public Works Contractor Registration Act.’ ” N.J.S.A 34:11-56.48 to -57. The bid instructions defined “[pjublie [wjorks” as including “any subcontractor or lower tier subcontractor as defined herein.”

Seventeen bids were received, ranging from a bid price of $3,010,000 to $3,898,000. The ascending order of the bidders2 who are participating in this appeal, and the amount of their [62]*62respective bid, is as follows:

1. A & K Excavating, LLC (A & K) $3,010,000

2. Maharaj Construction, Inc. (Maharaj) $3,082,000

3. R.C.G. Construction Co., Inc. (RCG) $3,127,000

RCG filed written objections with the Borough, alleging that it submitted the only fully compliant bid because, although A & K was registered under the PWCRA at the time it presented its bid proposal, its steel subcontractor, Zagata, was not. RCG also claimed that A & K’s failure to include its bid price of $3,010,000 in its corporate resolution was a material defect, and that Maharaj’s bid was invalid because necessary information was not contained in its corporate resolution.

On December 19, 2000, Keyport awarded the contract to A & K. In its resolution, the Borough stated that: (1) the registration of subcontractors was not expressly required by the bid specifications and that, in fact, Zagata’s registration certificate had been furnished to the Borough prior to its award of the contract to A & K; and (2) A & K’s failure to include its bid price in its corporate resolution was a waivable, nonmaterial defect.

In vacating the award of the contract to A & K, the trial court concluded that § 56.51 was clear and unambiguous because it states that “[n]o contractor shall bid on or engage in any contract for public work. . . .” It reasoned that since “contractor” by definition includes a “subcontractor” under N.J.S.A 34:11-56.50, the Legislature intended that both contractors and subcontractors “shall” be registered before the contractor bids on the public works project.

I

In determining legislative intent, the first step is to examine the language of the statute. Higgins v. Pascack Valley Hosp., 158 N.J. 404, 418, 730 A.2d 327 (1999). “If the statutory language is clear, that language ordinarily governs.” Ibid; see also Burns v. Belafsky, 166 N.J. 466, 473, 766 A.2d 1095 (2001) (same). However, if the language is ambiguous, we must interpret the statute in light of the Legislature’s intent, looking if [63]*63necessary to extrinsic evidence including legislative history and committee reports. Burns, supra, 166 N.J. at 473, 766 A.2d 1095; State v. Hoffman, 149 N.J. 564, 578, 695 A.2d 236 (1997). However, application of suggestive tools “should not lead to an interpretation that contradicts a common sense understanding of the statutory language.” State, Tp. of Pennsauken v. Schad, 160 N.J. 156, 173, 733 A.2d 1159 (1999). Ultimately, the court must seek to effectuate “the fundamental purpose for which the legislation was enacted.” N.J. Builders, Owners & Managers Ass’n v. Blair, 60 N.J. 330, 338, 288 A.2d 855 (1972).

Here, it is clear that the mandate of § 56.51 that “[n]o contractor shall bid on ... a contract for public works” without first registering requires the contractor to be registered before it submits its bid package. The confusion arises because the Legislature used the disjunctive “or” in the phrase “bid on or engage in any contract for public work. . . .” Ibid, (emphasis added). Zagata, A & K’s structural steel contractor, did not “bid” on the Keyport project. In fact, the parties agree that as a general rule, subcontractors “engage in,” but do not “bid” on public work projects. The ambiguity confronting us is the meaning of the phrase “engage in.”

We endorse Keyport’s and A & K’s argument that the Legislature intended that “engage in” means “perform” work on the public work project. The trial court rejected this interpretation, finding that “a subcontractor becomes ‘engaged’ or involved in the bidding process the moment the contractor lists the subcontractor on ... its bidding specifications” as required by the Local Public Contracts Law, N.J.S.A 40A:11-16. However, N.J.S.A 40A:11-16 requires the submission of subcontractors’ names in the bid proposal only for those who furnish “plumbing and gas fitting ... steam and hot water heating and ventilation apparatus, steam power plants ... [ejlectrical work, ... [and] [s]truetural steel and ornamental iron work____” We are advised that, as a practical matter, many other subcontractors are employed in a public works contract whose names are not required to be disclosed in a bid [64]*64proposal pursuant to N.J.S.A. 40A:11-16. All subcontractors are subject to the registration requirements under the PWCRA. The trial court’s reasoning leaves unresolved the question when these other subcontractors would become “engage[dj in” the public works contract.

In our view, the trial court’s broad interpretation of the phrase “engage[d] in” will lead to practical difficulties in the enforcement of the PWCRA. As noted, “[cjontractor” not only is defined as including a “subcontractor,” but also a “lower tier subcontractor of a contractor as defined herein....” N.J.S.A.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Anselmi & Decicco, Inc. v. J. Fletcher Creamer & Son, Inc.
New Jersey Superior Court App Division, 2025
R.C.G. Construction Co. v. Mayor of Keyport
812 A.2d 362 (Supreme Court of New Jersey, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
786 A.2d 895, 346 N.J. Super. 58, 2001 N.J. Super. LEXIS 462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rcg-construction-co-v-mayor-of-keyport-njsuperctappdiv-2001.