$4M Obama Center payment dispute forces Chicago contractor to shut down, lay off dozens

CHICAGO, ILLINOIS: The fanfare around the Obama Presidential Center's opening has been followed by renewed controversy after a Chicago plumbing contractor said it shut down operations and laid off 25 union workers, citing an almost $4 million payment dispute tied to the project that pushed the company to the edge.

Adamson Plumbing Contractors, while speaking to Fox News on Thursday, July 23, said it absorbed millions in project-related losses and is now pursuing legal action, seeking to recover funds it claims are still owed.

Obama Center contractor forced to close business

Mike Owen, owner of Adamson Plumbing Contractors, said the firm spent months attempting to reach a financial resolution with Lakeside Alliance, the construction manager for the Obama Presidential Center project.

Owen said the company continued working despite growing financial pressure, believing outstanding payments would eventually be made.

That expectation faded just days before the center’s official opening.

He added that Adamson agreed to supply plumbers for last-minute overnight work ahead of the June 19 launch after being assured a portion of pending payments would be released in advance.

The work was completed, he said, but the funds did not arrive as promised.

Without that payment, Owen said the company was no longer able to continue operating.

Rather than risk bankruptcy, he chose to suspend operations on June 25, lay off 25 union workers and withdraw from several other ongoing construction projects.

He later said roughly $135,000 did eventually reach the business, including retainage and change-order payments, but described it as arriving only after the damage was done.

“It was almost too little, too late,” Owen said, noting the funds helped ease some debt but could not reverse the shutdown.

After shutting the company’s office and laying off dozens of employees, Owen said he is now working from home as he weighs whether the business can reopen.

“I honestly never imagined the completion of this project would end this way,” he said, adding that for the first time in years, he may soon be searching for a job instead of leading the company he built.

Legal fight expands as contractor files lien

The dispute has now entered the legal phase.

Adamson Plumbing, operating as Marsh-Adamson, has filed a $1.72 million mechanic’s lien against the Obama Presidential Center property, alleging it remains unpaid for work completed on the project.

Owen said the lien covers only the portion of losses supported by the strongest documentation, while maintaining the company ultimately absorbed nearly $3.9 million in costs tied to delays, added labor, project changes and rework. He added that further legal action is still being considered.

According to Owen, pursuing a lawsuit was never his preferred path.

He said he spent months trying to resolve the dispute privately before concluding he had no other choice.

Adamson is not the only subcontractor to report financial disputes linked to the Obama Presidential Center.

Several companies involved in the project have previously said they were left with significant losses or were still awaiting payment.

One firm, Concrete Collective, has reportedly sought more than $40 million in additional compensation tied to its work.

Lakeside Alliance has defended its handling of contractor payments, noting that closeout work on projects of this size often continues well after construction is completed.

The Obama Foundation has also said subcontractor payments were managed through Lakeside Alliance and pointed out that it implemented faster payment cycles than those typically used on large construction projects.