Obama Center subcontractor faces $4 MILLION loss, lays off 25 amid payment dispute

The Obama Presidential Center opened with promises of economic opportunity for Chicago’s South Side, but now, one subcontractor says the project left his company fighting for survival.

Adamson Plumbing Contractors, a Chicago-based company that worked on the center under the name Marsh-Adamson, has suspended operations and laid off 25 union employees after owner Mike Owen says the company was left nearly $4 million in the hole following years of construction disputes, delays and unpaid costs.

Owen told Fox News that the company’s collapse came after months of unsuccessful negotiations over money he says Adamson was owed for plumbing work, labor overruns and project changes. “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.”

The shutdown has added fresh controversy to a project that has already faced questions over construction costs, taxpayer protections, and allegations from multiple black subcontractors who say they suffered financial losses while working on the presidential center. Adamson is just one of several companies that say they experienced financial problems after working on the Obama Presidential Center, a project promoted as a major economic opportunity for local and minority-owned businesses.

Owen says his company absorbed approximately $3.9 million in losses tied to delays, rework, labor expenses and changing demands throughout construction. After negotiations failed, Marsh-Adamson filed a $1.72 million mechanic’s lien against the property, arguing it remains owed money for completed work. “It doesn’t mean that I’m not going to pursue the $3.9 million in change that we lost overall,” he clarified.

Owen said his company agreed to provide last-minute plumbing work ahead of the center’s grand opening after being told a portion of its outstanding payment would be released. According to Owen, Adamson completed the additional work but did not receive the expected payment on time, creating a financial breaking point for the company. The money eventually arrived weeks later, including a $100,000 retainage payment and approximately $35,000 related to change orders, but Owen said the damage had already been done. “It’s almost like too little, too late,” he said. Questions have also been raised about the financial safeguards surrounding the center's development, the expensive fanfare of its opening, and whether taxpayers could face future costs.

The center was built on a 19.3-acre Jackson Park site secured through a long-term lease arrangement with the city of Chicago. Lakeside Alliance, the construction management group overseeing the project, said: "[We] remain committed to working through all outstanding matters to successfully close out the project,” a spokesperson said.

The foundation itself said it had no outstanding disputed charges with Lakeside and highlighted its efforts to support contractors working on the project. The plumber criticized the lack of public attention surrounding subcontractors’ financial struggles, arguing that the response would have been different if the project had been associated with a different political figure. "The ownership group [at the Obama Presidential Center], they truthfully just don’t care... I’m going to have to go find a job,” Owen said. “I did not anticipate the completion of this project would take this turn.”