gistfile1.txt

Sugar.count(:conditions => {:phone_work => "LIKE %#{params[:cid_number]}%"})

You have a nil object when you didn't expect it!
You might have expected an instance of ActiveRecord::Base.
The error occurred while evaluating nil

sugar.rb
#the class defines the webservices to connect to sugarCRM
class Sugar < SugarCRM::Contact
end