Weeks after the Obama Presidential Center's opening, a subcontractor has ceased operations and laid off 25 union workers, citing a significant payment dispute. Adamson Plumbing Contractors, operating as Marsh-Adamson on the project, claims it is owed approximately $3.9 million for work performed on the center.
Mike Owen, owner of Adamson Plumbing Contractors, told Fox News Digital that the financial strain forced the company to abandon other construction jobs and pushed it to the brink of collapse. He described the shutdown, which occurred on June 25, as a necessary step to prevent bankruptcy.
Adamson has filed a mechanic's lien for $1.72 million against the Obama Presidential Center property, initiating a legal battle over the outstanding payments. The company is one of several subcontractors that have reported financial difficulties following their involvement with the center, which was promoted as a source of economic opportunity for businesses, including those owned by minorities.
Payment Dispute and Shutdown
Owen stated that before the center's opening, his company had incurred $3.9 million in losses attributed to project delays, rework, labor cost overruns, and evolving project demands. He indicated that months of negotiations with Lakeside Alliance, the project's construction manager, failed to resolve the issue.
The situation escalated when Adamson Plumbing was asked to perform additional "housekeeping" work on the campus at premium nighttime rates shortly before the center's June 19 opening. In exchange, Owen said, Adamson was supposed to receive a portion of its outstanding payment. An email reviewed by Fox News Digital showed a Lakeside Alliance representative confirming a $100,000 payment would be released.
Adamson completed the requested work, but the payment was not made on time. Owen identified this as the "final death blow" to the company, compelling him to suspend operations and lay off workers. He noted that the $100,000 retainage payment and approximately $35,000 for change orders have since arrived, but the funds arrived more than two weeks after the shutdown and only partially addressed the company's debt to one supplier.
"It's almost like too little, too late," Owen said. "We're still deep in the hole of what they owe us."
Legal Action and Project Oversight
Adamson Plumbing has now turned the dispute over to its legal team. The $1.72 million mechanic's lien filed by Marsh-Adamson represents the amounts Owen believes are most readily verifiable, including unpaid fees, logged change orders, and labor overruns supported by company records. Owen indicated he intends to pursue the full $3.9 million in lost costs.
Lakeside Alliance, a joint venture led by Turner Construction and four Black-owned Chicago construction firms, is the project's construction manager. A spokesperson for Lakeside Alliance stated that "contractual closeout continues long after the doors have opened" on complex, large-scale projects and that the alliance remains committed to resolving outstanding matters.
The Obama Foundation, which oversees the center's construction, has stated that Lakeside Alliance is responsible for managing and paying subcontractors. The foundation also noted that its financial support for firms exceeded industry standards, with a 15-day payment cycle and instances of accelerated or advanced payments.
The Obama Presidential Center's construction costs have reportedly surpassed $1 billion, significantly exceeding initial projections. Questions have also been raised regarding a reserve fund intended to protect Chicago taxpayers, with only $1 million deposited into a promised $470 million fund.
Owen expressed his personal toll from the ordeal, leaving him uncertain about the future of Adamson Plumbing. He also voiced frustration that the struggles of subcontractors had not garnered more public attention or intervention, particularly from the pro-union governor of Illinois.
"They truthfully just don't care," Owen said of the project's ownership group, expressing a sentiment shared by some subcontractors who had hoped disputes would be resolved post-construction.