The financial fallout from the Obama Presidential Center is still rippling through Chicago, with one subcontractor now shutting down operations and laying off 25 union workers after claiming the project left his company millions of dollars in the red.
Mike Owen, owner of Chicago-based Adamson Plumbing Contractors, told Fox News the company’s cash crunch forced it to walk away from roughly six other construction projects and pushed it to the brink of bankruptcy.
“Laying off close to 30 people is something that no owner in our industry wants to do,” Owen said. “It’s a hard thing to do, especially when you know you can finish them and the company can still make money. But we were put in a pretty bad corner.”
Adamson, which worked on the Obama Presidential Center under the name Marsh-Adamson, has since filed a $1.72 million mechanic’s lien against the property, escalating its payment dispute into a legal battle.
The company is one of several subcontractors that have reported financial problems tied to the high-profile Obama project, which was billed as an economic boost for small and minority-owned businesses.
A previous Fox News Digital investigation found multiple subcontractors, including Black-owned firms that were expected to benefit from the development, claimed they were left with unpaid bills or major financial losses. The largest dispute involves the Concrete Collective, which is seeking more than $40 million in additional compensation.
Before the center officially opened, Owen said his company had already absorbed about $3.9 million in losses because of project delays, repeated rework, labor overruns and shifting construction demands. He said months of negotiations with Lakeside Alliance, the project’s construction manager, failed to resolve the dispute before he decided to go public.
According to Owen, the breaking point came just before the Obama Presidential Center’s June 19 opening.
He said Adamson reached an agreement with Lakeside Alliance to provide two journeyman plumbers for last-minute “housekeeping” work at premium overnight rates. In exchange, the company was supposed to receive part of its outstanding balance before the opening ceremony.
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An email reviewed by Fox News Digital showed a Lakeside representative telling Owen that $100,000 would be released through Adamson’s May payment application.
Owen said his company completed the work, but the payment never arrived before the opening, leaving Adamson without the cash it needed to continue operating.
“We negotiated it in good faith,” he said. “Against my better judgment, I agreed [to do the work].”
“Not getting that large sum of money just kind of pulled the brakes on the train. It was just the final death blow to the company,” he added. “Rather than try to stretch it out and go bankrupt, I just decided the responsible thing was to shut it down. We’ll regroup, and we’ll see where we’re at come September.”
Adamson suspended operations on June 25 and laid off 25 union employees.
Owen said the promised $100,000 retainage payment, along with roughly $35,000 for approved change orders, eventually arrived more than two weeks after the shutdown.
The late payment allowed the company to reduce what it owed one supplier but did little to change its overall financial situation.
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“It’s almost like too little, too late,” Owen said. “It probably would have just prolonged the inevitable at this point,” he said. “We’re still deep in the hole of what they owe us.”
Owen said Adamson has since vacated its office, and he is now working from home while attorneys handle the dispute and he decides whether the company can survive.
Court documents reviewed by Fox News Digital show Marsh-Adamson filed a $1.72 million mechanic’s lien against the Obama Presidential Center, alleging it has not been fully paid for plumbing work completed on the site. A mechanic’s lien is a legal claim contractors or suppliers can file against a property when they believe they have not been paid for completed work.
The lien amount is significantly lower than the roughly $3.9 million Owen says his company ultimately lost on the project. He said the filing only covers claims he believes are backed by the strongest documentation, including unpaid invoices, approved change orders and labor overruns.
“It doesn’t mean that I’m not going to pursue the $3.9 million in change that we lost overall,” Owen said. “I’m still working with my legal team on that $3.9 million figure because I feel that it’s only right that we still hold ownership at the presidential center accountable.”
Owen said he initially tried to avoid taking legal action while negotiations continued.
“I’m not a litigious person, but at the same time, our legal system is there to protect the small guy,” Owen said. “I’m just going to have to fight this out legally from here on out, and these aren’t cheap costs.”
He said the payment received after the shutdown will be credited against the $1.72 million lien.
Lakeside Alliance, a joint venture led by Turner Construction along with Chicago firms UJAMAA Construction, Powers & Sons Construction, Brown & Momen and Safeway Construction, served as construction manager for the Obama Presidential Center.
The alliance previously said about 475 contractors worked on the project. In its latest statement, Lakeside said that “contractual closeout continues long after the doors have opened” on projects of this size and complexity.
“Lakeside Alliance remains committed to working through all outstanding matters to successfully close out the project,” a spokesperson said.
The company did not directly respond to Owen’s allegations, the layoffs or the mechanic’s lien.
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[ H/T Trending Politics ]
