Miami Beach Convention Center contractor sues city, alleging $90M in unpaid work

Clark Construction alleges the city has not paid the firm and more than 30 subcontractors for some of the work it performed

Miami /
Jan.January 29, 2020 05:30 PM
Clark Construction CEO Robert Moser Jr., Miami Beach City Manager Jimmy Morales and Miami Beach Convention Center (Credit: iStock, Google Maps)

Clark Construction CEO Robert Moser Jr., Miami Beach City Manager Jimmy Morales and Miami Beach Convention Center (Credit: iStock, Google Maps)

UPDATED, Jan. 29, 6:55 p.m.: During Art Basel Miami Beach, attendees enjoyed new exhibition space at the Miami Beach Convention Center, thanks to the completion of a half billion-dollar renovation project.

But Clark Construction, the contractor on the project, alleges the city of Miami Beach still owes it about $90 million in unpaid work, even as the convention center was hosting events and generating revenue from conferences.

In a lawsuit filed Wednesday in Miami-Dade Circuit Court, the Bethesda, Maryland-based construction company alleges the city has not paid the firm and more than 30 subcontractors for some of the work performed on the project. That includes $70 million in unpaid work and $20 million in contract balance owed.

Miami Beach City Manager Jimmy Morales responded to the suit, saying in a statement that the city will “fully litigate the matter.”

“I find it shocking, given that Clark Construction has delayed this project for nearly 1.5 years, that they have the gall to file a lawsuit against us,” Morales said in the statement. “Frankly, the city is the one entitled to damages, not Clark.”

Clark alleges that since it reached an agreement in 2015 to work on renovations costing over $515 million, the city insisted on numerous redesigns and new plans, inflating the labor and supply costs and extending the completion date of the project. According to the suit, Miami Beach worked with the consulting company Hill International to push for the new plans, while also rejecting time extensions by Clark.

Clark’s agreement involved the 1.5 million-square-foot renovation of part of the Miami Beach Convention Center, including 500,000 square feet of exhibit halls, meeting rooms, and pre-function support spaces; a new 60,000-square-foot grand ballroom; and landscaping and street improvements.

Despite the convention center operating, it has not yet received its Temporary Certificate of Occupancy, also known TCO, primarily due to an issue with the fire alarms, said Etan Mark at the Miami-based law firm Mark Migdal & Hayden, who represents Clark Construction. Yet, over 92 shows were held throughout construction, including 52 since the substantial completion date of August 23, 2018, according to the complaint.

Mark said the city’s actions have had a large financial impact on many of Clark’s subcontractors, which are based in South Florida. “There are now dozens of Miami-based subcontractors who have not been paid,” Mark said.

Clark also alleges Miami Beach owes the company $1.2 million that the city received from Miami-Dade County for delays and impacts on the convention center caused by Hurricane Irma in 2017.

The suit follows one filed in June by Banker Steel against four insurance companies that provided a $515 million performance bond for the project. The suit alleged that Clark Construction failed to pay by Lynchburg, Virginia-based Banker Steel $3.2 million for unpaid labor, services and materials that were furnished by June 2018.


Related Articles

arrow_forward_ios
Alex Rodriguez and Constantine Scurtis of Lynd (Getty)
A-Rod hits home run on 13 suits by ex-brother-in-law over real estate empire
A-Rod hits home run on 13 suits by ex-brother-in-law over real estate empire
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
830 Brickell and the co-developers Cain's Jonathan Goldstein and Vlad Doronin (Getty, OKO Group / Cain International)
Lease roundup: Canada’s CI Financial picks Brickell for new US HQ
Lease roundup: Canada’s CI Financial picks Brickell for new US HQ
Tech entrepreneur pays $8M for Continuum South Beach condo
Tech entrepreneur pays $8M for Continuum South Beach condo
Tech entrepreneur pays $8M for Continuum South Beach condo
Harvey Hernandez and a rendering of his Brickell project
Harvey Hernandez plans three-tower project on riverfront Brickell site
Harvey Hernandez plans three-tower project on riverfront Brickell site
Ex-Miami Dolphins defensive end Andre Branch with the $6 million property (Getty, The Jills Zeder Group)
Ex-Miami Dolphins player sells non-waterfront Miami Beach home for $6M
Ex-Miami Dolphins player sells non-waterfront Miami Beach home for $6M
Louis McMillian of Global International Realty and real estate investor Thomas Conway, president of Miami-based Conway CRE (Global International Realty, LinkedIn via Conway)
Jumping the gun? Miami brokerage sues developer for commission on future Bellsouth land deal
Jumping the gun? Miami brokerage sues developer for commission on future Bellsouth land deal
Renderings of 3017 Flamingo Drive and Andrew Lessman (D/Vice Inc., ProCaps Laboratories)
Vitamin mogul Andrew Lessman wins approval to build Miami Beach mansion
Vitamin mogul Andrew Lessman wins approval to build Miami Beach mansion
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...