Obama Center subcontractors deal with unpaid bills as opening draws closer

Contractors on the Obama Presidential Center say their invoices are going unpaid, reportedly missing millions in payments and jeopardizing the future of businesses.

The Obama Center has gone hundreds of millions over its original $300 million cost estimate. The 19-acre museum and library’s construction cost has ballooned over the years to a staggering $850 million, nearly tripling the projected budget.

African American Contractors Association president Omar Shareef said that a total of seven separate subcontractors have contacted him for help with pursuing missing payments in the past several months, according to Crain’s. Some of the contractors are owed seven figures. They’re willing to settle for less, as long as they can keep their businesses running.

“It’s to the point that they wished they had never done (the project),” Shareef told the outlet.

The delays and skyrocketing costs were caused in part by the pandemic and in part by a half-decade legal battle. By the time the groundbreaking ceremony was held in 2021, the cost was pegged at $830 million. The center will finally open on next Friday, the Juneteenth holiday, and the public will gain access to the work of roughly 475 subcontractors, according to the outlet.

Some of the struggles with contractors have been out in the open for months. A spat between Thornton Tomasetti and Obama Center subcontractor II in One spilled over into a $40 million federal lawsuit that saw the black-owned II in One file a lawsuit against Thornton for alleged false claims and racial discrimination. Thornton is the firm managing structural engineering and design services for the development. According to the publication, there are other subcontractors engaging with legal counsel to resolve payment disputes.

Lakeside Alliance, the general contractor for the project, claimed that the project’s size and the amount of moving parts mean the negotiations and strain are normal. In a statement, Lakeside said the Obama Center’s “contractual closeout — including the review and resolution of outstanding invoices, change orders and other project matters — continues long after the doors open.”

— Hunter Cooke