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Contracts Keyed to Fuller
Zulla Steel, Inc. v. A & M Gregos, Inc.
Citation:
174 N.J. Super. 124, 415 A.2d 1183 (App. Div. 1980)Facts
On June 16, 1975, Zulla Steel and A & M Gregos entered into a written subcontract for structural steel work on the Elizabeth post office expansion project for $340,000, to be paid in installments. The contract specified that 90% of the value of completed and approved work would be paid on or about the fifteenth day of each succeeding month, with the remaining 10% to be paid thirty days after project completion. Zulla began work in summer 1975 and continued into early 1976 before abandoning the project. Gregos’ own payment applications to the post office showed that by November 14, 1975, Zulla had completed work valued at $304,000 (82.16% of the $370,000 allocated to Zulla’s work in the prime contract), entitling Zulla to payment of $251,410 by December 15, 1975. However, by that date, Zulla had received only $118,792. Zulla ultimately received total payments of $260,712, but these payments were substantially delayed and insufficient to cover the work completed.
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