The Daily BS • Bo Snerdley Cuts Through It!
The Daily BS • Bo Snerdley Cuts Through It!

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Obama Center subcontractor shuts down, lays off 25 after $4 million payment fight

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BS BRIEF:

  • A Chicago plumbing subcontractor that worked on the Obama Presidential Center has suspended operations and laid off 25 union employees after claiming nearly $4 million in losses tied to the project.
  • The company has now filed a $1.72 million mechanic’s lien against the Obama Presidential Center property while indicating it may pursue additional legal claims seeking to recover its reported losses.
  • The dispute is the latest in a series of payment complaints from subcontractors who say they suffered major financial losses while working on the more than $1 billion project.

OBAMA CENTER SUBCONTRACTOR SHUTS DOWN, LAYS OFF 25 AS $4 MILLION PAYMENT DISPUTE HEADS TO COURT

Just weeks after the grand opening celebrations at the Obama Presidential Center in Chicago, one of the project’s subcontractors says the financial fallout from years of disputed costs has forced his company to shut its doors.

Mike Owen, owner of Chicago-based Adamson Plumbing Contractors, told Fox News Digital that his company suspended operations, laid off 25 union workers and abandoned roughly half a dozen other construction projects after what he says was a nearly $4 million financial hit tied to its work on the Obama Presidential Center.

“Laying off close to 30 people is something that no owner in our industry wants to do,” Owen said.

“It’s a hard thing to do, especially when you know you can finish them and the company can still make money. But we were put in a pretty bad corner.”

According to Owen, the breaking point came shortly before the center’s June opening when Adamson agreed to provide additional last-minute plumbing work after being assured part of its outstanding payment would be released beforehand.

“We negotiated it in good faith,” Owen said. “Against my better judgment, I agreed.”

When the payment did not arrive on time, Owen says the company could no longer continue operating.

“Not getting that large sum of money just kind of pulled the brakes on the train. It was just the final death blow to the company,” he said.

“Rather than try to stretch it out and go bankrupt, I just decided the responsible thing was to shut it down.”

Although Owen said approximately $135,000 later arrived from Lakeside Alliance—including a promised retainage payment and change-order compensation—he described the money as arriving too late to save the business.

“It’s almost like too little, too late,” Owen said. “We’re still deep in the hole of what they owe us.”

The dispute has now entered the legal arena.

Records reviewed by Fox News Digital show Marsh-Adamson, the entity that performed the plumbing work, filed a $1.72 million mechanic’s lien against the Obama Presidential Center property. Owen says that amount represents only the portion of his losses that is most easily documented and that he continues to pursue the broader claim of roughly $3.9 million.

“It doesn’t mean that I’m not going to pursue the $3.9 million,” Owen said. “I’m still working with my legal team… because I feel that it’s only right that we still hold ownership at the presidential center accountable.”

The controversy extends beyond one contractor.

Fox News previously reported that several subcontractors—including minority-owned businesses the project was intended to help—have alleged they remain owed substantial sums after years of construction delays, repeated design revisions and disputed change orders. One joint venture involved in concrete work is pursuing claims exceeding $40 million, while other firms have reported six- and seven-figure losses.

Lakeside Alliance, the project’s construction manager, did not directly address Owen’s allegations but said in a statement that contractual closeout on projects of this scale continues long after ribbon-cutting ceremonies.

“Lakeside Alliance remains committed to working through all outstanding matters to successfully close out the project,” a spokesperson said.

The Obama Foundation likewise emphasized that Lakeside Alliance—not the Foundation—was responsible for managing subcontractor payments. The Foundation added that it implemented a 15-day payment cycle and, in some cases, accelerated payments to assist smaller firms, while stating it has no outstanding disputed charges with Lakeside Alliance.

Meanwhile, questions surrounding the project’s finances continue. Construction costs originally estimated at roughly $350 million have reportedly climbed beyond the $1 billion mark, while previous reporting has also examined concerns surrounding reserve funding and ongoing contractor disputes.

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