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Obama Center Subcontractor Shuts Down, Blames Project
25 Jul
Summary
- A subcontractor has ceased operations and laid off 25 workers.
- The company claims nearly $4 million in losses tied to the Obama Center.
- A legal dispute has escalated with a $1.72 million mechanic's lien filed.
Weeks after the Obama Presidential Center's widely publicized opening in Chicago, a key subcontractor, Adamson Plumbing Contractors, has ceased operations. This decision has resulted in the layoff of 25 union workers and the abandonment of approximately half a dozen other construction projects.
Owner Mike Owen stated that the financial strain from the Obama Presidential Center project led to the shutdown, which he described as a necessary step to avoid bankruptcy. The company has filed a $1.72 million mechanic's lien against the center's property, intensifying a payment dispute with the project's construction manager, Lakeside Alliance.
Adamson, which worked on the center under the name Marsh-Adamson, reported losses totaling $3.9 million. These losses were attributed to project delays, rework, labor overruns, and evolving project requirements. The situation highlights broader financial struggles reported by several subcontractors after working on the center, which was promoted as an economic opportunity for smaller businesses.
