Subcontractor Says Obama Center Stiffed Him On Payments, Nearly Bankrupted Him

A subcontractor for the Obama Presidential Center has announced massive layoffs and canceled projects due to not receiving $4 million he is still owed for his work.

Mike Owen, the owner of Adamson Plumbing Contractors, told Fox News Digital that he had to lay off 25 of his workers and cancel multiple contracts after failing to receive payments on time.

The Obama Center chose Lakeside Alliance, a joint venture with Turner Construction and four black-owned Chicago construction firms, as the center’s construction manager. Subcontractors reported that the whole project was marred by design changes, scheduling disruptions, and unnecessary oversight from Lakeside Alliance.

A Fox News Digital investigation corroborated the allegations that multiple subcontractors and minority-owned construction firms have outstanding claims for their work on the Obama Presidential Foundation, ranging from hundreds of thousands to tens of millions of dollars. This finding appears to be at odds with the stated goal of the Obama Presidential Center to support minority-owned businesses.

Owen stated that he had to fire his workforce to avoid bankruptcy after a missing $100,000 payment put him over the edge.

Owen said he agreed to do some last-minute “housekeeping” work at the presidential library, which he admitted was “against my better judgment,” in return for $100,000 that was to be given in the May payment application.

Though his team completed the work, the payment did not arrive on time, putting his company at the “breaking point” and forcing him to suspend operations until June 25.

“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,” Owen added. “Rather than try to stretch it out and go bankrupt, I just decided the responsible thing was to shut it down. We’ll regroup, and we’ll see where we’re at come September.”

Owen finally received the $100,000 two weeks after going through company-wide layoffs.

“It’s almost like too little, too late,” he said. “It probably would have just prolonged the inevitable at this point. We’re still deep in the hole of what they owe us.”

Owen has filed a $1.72 million mechanic’s lien to try for his most readily documented unpaid work, and he is reportedly working with the legal team to recover the full $3.9 million that he is owed.

“I’m not a litigious person, but at the same time, our legal system is there to protect the small guy,” Owen said. “I’m just going to have to fight this out legally from here on out, and these aren’t cheap costs.”

Owen admitted that the whole project has taken a toll on his mental health.

“I’m cooked emotionally. I feel like an aluminum can that’s been thrown in front of a steamroller. We’re crushed,” he said. “And I have to fight for my company and for my people.”

The Obama Foundation sent FactCheck.org a statement saying that Lakeside Alliance, the construction manager, had “primary responsibility … to hire and manage all the subcontractors for the project. Lakeside oversaw the bidding process, including reviewing bids for an understanding of the scope of work and related costs.”

The Obama Foundation has shrugged off any liability for the unpaid contracts, stating that it has “no direct legal agreements or contracts with Lakeside’s subcontractors.”

The statement added that Lakeside had “identified subcontractors who needed financial assistance” and the foundation “has worked with Lakeside to find a path forward, often involving accelerated payments or prepayments to support the subcontractor’s efforts.”

The Daily Wire previously reported that the Obama Presidential Center, which opened to the general public on Juneteenth, came in millions of dollars over budget and several years late.

The center, funded by private donors, reportedly racked up an $830 million price tag, according to the Associated Press, and total costs are likely to actually be over the $1 billion mark. Even when adjusted for today’s dollars, it took less to build the Eiffel Tower ($44 million), Mount Rushmore ($23 million), the Seattle Space Needle ($38 million), and the Gateway Arch ($130 million) combined.

When President Donald Trump was asked about the presidential library, he said, “It’s not too pretty,” and added, “He wanted only women and DEI to build it. Well? That’s what they got.”

“But they’re hundreds of millions of dollars over budget, and I think it stopped. I’m reading these terrible stories, but that’s the way our country was run under President Obama, too,” the president said.