Several minority-owned construction firms that helped build the Obama Presidential Center in Chicago say they are still owed millions of dollars and fear the financial damage could threaten their businesses, according to contractors and industry advocates speaking out as the center prepares to open.
Omar Shareef, president of the African American Contractors Association, said multiple Black-owned contractors are under significant financial pressure because of work performed on the project. The allegations carry added weight because the center was widely promoted as an economic opportunity for minority-owned businesses on Chicago’s South Side.
The complaints come just days before the center’s formal dedication ceremony. The Obama Presidential Center is scheduled to be dedicated Thursday with appearances by Bruce Springsteen, Stevie Wonder, and John Legend, before opening to the public on Juneteenth. The 19.3-acre campus sits in Jackson Park and is expected to become one of the most significant landmarks associated with former President Barack Obama.
At the center of the dispute is II in One Concrete, a Black-owned company that participated in a joint venture known as the Concrete Collective alongside Trice Construction and W.E. O’Neil Construction. The group performed major structural concrete work throughout the project and has filed claims exceeding $40 million, alleging substantial additional costs resulting from project changes and delays.
In a separate lawsuit, II in One Concrete has accused engineering firm Thornton Tomasetti of racial discrimination, alleging the company was subjected to excessive scrutiny and unfairly blamed for project delays. Thornton Tomasetti has denied the allegations and maintains that performance issues, not discrimination, were responsible for the project’s challenges. The litigation remains ongoing.
The financial concerns extend beyond minority-owned firms.
Mike Owen, owner of Adamson Plumbing, told Fox News Digital that his company has suffered nearly $4 million in losses after years of work on the project. Owen attributed the losses to repeated design revisions, schedule changes, and project delays that significantly increased costs.
“That is a hole that no subcontractor, small business can survive,” Owen said, warning that layoffs could become necessary if the losses are not recovered.
Another minority-owned contractor reportedly told Fox News Digital that his company absorbed approximately $2.5 million in losses but declined to speak publicly because of a non-disclosure agreement. According to that contractor, work initially expected to last roughly 24 months stretched to nearly five years.
Shareef said some contractors remain reluctant to speak publicly because they fear doing so could jeopardize ongoing efforts to recover disputed payments.
The Obama Foundation disputes suggestions that it directly owes money to subcontractors. The foundation said it paid Lakeside Alliance, the project’s construction manager and general contractor, which in turn was responsible for managing and paying subcontractors. Foundation officials stated that there are no outstanding disputed charges between the foundation and Lakeside Alliance and noted that the foundation has no direct contractual relationship with subcontractors.
The foundation also said it worked with Lakeside Alliance to help smaller firms participate successfully in the project through accelerated payment schedules, advance payments, and a 15-day payment cycle designed to improve cash flow.
Lakeside Alliance acknowledged that financial issues frequently remain unresolved on large construction projects even after completion and said it continues working through outstanding claims and disputes.
Fox News Digital reported that it could not independently verify the losses claimed by contractors or confirm whether any businesses face closure.
The payment controversy arrives alongside renewed scrutiny of the project’s broader finances.
The foundation’s 2020 annual report described plans for a $470 million endowment intended to support future operations and reduce the likelihood of taxpayer-funded support. Public filings, however, indicate the reserve currently contains approximately $1 million. Foundation officials have responded by noting that the agreement with the City of Chicago did not require a specific endowment amount.
Meanwhile, the project’s construction cost has grown substantially. Early estimates of approximately $330 million have risen to nearly $850 million following years of delays, design changes, and construction challenges.
For many of the contractors involved, those rising costs translated into additional labor, equipment expenses, financing costs, and overhead that they say remain unpaid.
As the Obama Presidential Center prepares to welcome visitors, the celebration surrounding one of President Obama’s most ambitious post-presidency projects is unfolding alongside unresolved legal claims, financial disputes, and allegations from some of the very businesses the project was expected to help.
Whether those contractors ultimately recover the money they claim is owed will likely be determined through negotiations and court proceedings long after the ribbon-cutting ceremony concludes. For the companies involved, however, the issue is more immediate: payroll, suppliers, and lenders continue to demand payment regardless of how long legal disputes take to resolve.
JBizNews Desk
Chicago
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