Updated
Updated · Fox News · Jul 23
Marsh-Adamson Files $1.72 Million Lien on Obama Center, Lays Off 25 in Payment Fight
Updated
Updated · Fox News · Jul 23

Marsh-Adamson Files $1.72 Million Lien on Obama Center, Lays Off 25 in Payment Fight

1 articles · Updated · Fox News · Jul 23

Summary

  • Marsh-Adamson filed a $1.72 million mechanic’s lien against the Obama Presidential Center after owner Mike Owen said a nearly $4 million payment dispute forced the plumbing subcontractor to suspend operations on June 25.
  • A promised $100,000 payment tied to last-minute pre-opening work did not arrive before the June 19 launch, Owen said, calling the delay the breaking point that led to 25 union layoffs and the abandonment of about six other jobs.
  • Lakeside Alliance later sent the $100,000 retainage and about $35,000 for change orders, but Owen said the money came too late to reverse the shutdown and would be deducted from the lien.
  • Lakeside, the project’s construction manager, said closeout on a project involving about 475 contractors continues after opening; the Obama Foundation said it had no outstanding disputed charges with Lakeside.
  • The dispute adds to broader scrutiny of the center, where other subcontractors have reported unpaid balances, construction costs have risen from about $350 million to more than $1 billion, and a promised $470 million taxpayer reserve has only $1 million deposited.

Insights

With one contractor out of business, will a dozen others with $100 million in claims be next at the Obama Center?
How did a project promising to uplift local businesses allegedly lead to their financial collapse and a flurry of legal actions?