Politics & Government
Basking Ridge Settles Lawsuit Over Road Paving Contract
Reivax Contracting Corp. filed a lawsuit in Somerset County Superior Court after the Township terminated its contract with them.
BASKING RIDGE, NJ — Bernards Township settled a lawsuit with Reivax Contracting Corp. following a dispute over a road improvement contract.
The Township Committee passed a resolution authorizing the settlement at its March 26 meeting to allow Reivax to complete the road improvement contract at a reduced amount than originally bid.
On June 27, 2023, the Township awarded Reivax a public works contract for $2.4 million as part of the 2023 Road Improvements - Phase I.
Find out what's happening in Basking Ridgewith free, real-time updates from Patch.
Work was set to begin on July 31, 2023, and be completed by Nov. 28, 2023.
Reivax began work on the project between Aug. 30, 2023, and Dec. 7, 2023, when they stopped allegedly due to winter weather conditions, according to Bernards Township's settlement resolution.
Find out what's happening in Basking Ridgewith free, real-time updates from Patch.
On Dec. 7, 2023, the Township said "Reivax had not achieved substantial completion of the Phase I Contract work and had fully completed the work on only 3 of 14 roads."
On Feb. 2, 2024, Township Attorney John Belardo sent a letter to Reivax letting them know their contract would be terminated for material breach.
On Feb. 15, the Township solicited bids for a public works contract known as 2023 Road Improvements - Phase II, Bid that essentially included all work that Reivax did not complete under the Phase I Contract, according to the resolution.
On Feb. 26, Reivax filed a lawsuit in Somerset County Superior Court alleging the Township's wrongful termination of its contract, seeking relief and to rejoin the bidding process.
Reivax submitted a bid for the Rebid for $1,158,261.20, which was the lowest bid submitted. Reivax’s bid is $22,739.20 less than the $1,181,000.40 in work remaining to be done under the Phase I Contract.
Reivax also agreed to reduce its agreed amount on the remaining work by an additional $7,500.
Both the Township and Reivax ultimately came to a settlement and the resolution was passed last week to avoid further litigation and to resolve the lawsuit.
The Township declined to comment to Patch regarding the lawsuit and settlement.
See the full resolution and settlement agreement below:
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
