UMVA has learned that a growing number of subcontractors who worked on the Obama Presidential Center in Chicago are facing financial ruin, claiming they are owed millions of dollars in unpaid work.
The construction project, which was billed as a model for minority-owned and local businesses, has left several subcontractors struggling to recover losses they attribute to the project. Overall construction costs were estimated to be $830 million in 2021 and have likely climbed past the $1 billion mark.
One subcontractor, Adamson Plumbing, claims to be nearly $4 million in the red after years of work on the project. "That is a hole that no subcontractor, small business can survive," owner Mike Owen said. Owen described the experience as a "nightmare" and one of the most difficult projects he had encountered.
According to information obtained by UMVA, several subcontractors have described a chaotic work environment marked by repeated design changes, rework, scheduling disruptions, and extensive oversight. Many have also expressed frustration with the payment process, saying they have been left with significant financial losses.
A non-disclosure agreement and a reluctance to speak publicly have muzzled some Black subcontractor firms, according to Omar Shareef, president of the African American Contractors Association. "They are scared to death about talking about it," Shareef said.
Shareef said several Black subcontractor owners began approaching him about six months ago, claiming significant losses tied directly to the project. "The promise was that this project was going to uplift minority contractors and uplift the community," Shareef said.
UMVA can exclusively reveal that several subcontractors have filed mechanic's liens, a legal tool that companies use when they claim they are owed money for construction work. Two companies filed liens for around $400,000 and $75,000 respectively.
The Obama Presidential Center was built around an ambitious effort to increase participation by minority-owned businesses and workers from historically underserved communities. However, the financial struggles of subcontractors raise questions about the project's success in achieving its goals.
Despite the financial losses, Owen said he still takes pride in the finished product. "I've heard the criticisms of the design out here and maybe from an outsider's perspective, it might not be your cup of tea, but I can tell you the interior of this presidential center is quite beautiful and it's something to be proud of," Owen said.
As the center prepares to open its doors to the public, many Chicago residents are excited about the prospect of a new landmark in their city. However, for some subcontractors, the approaching opening date represents a shrinking window to resolve payment disputes they say have lingered for years.
