Weeks after the Obama Presidential Center’s star-studded opening in Chicago, a subcontractor who previously claimed his company was stiffed for nearly $4 million has shut down operations and laid off 25 union workers. Mike Owen, the owner of Chicago-based Adamson Plumbing Contractors, told Fox News Digital that the financial fallout forced the company to abandon about half a dozen other construction jobs and left it on the verge of collapse.
Adamson, which performed its work on the center under the name Marsh-Adamson, has since filed a $1.72 million mechanic’s lien against the property, escalating the payment dispute into a legal fight.The company is one of several subcontractors to report financial trouble after working on the center, which was promoted as a transformative economic opportunity for small and minority-owned businesses.
A previous investigation by Fox News Digital identified several subcontractors including Black-owned firms the project was specifically intended to support that said they were owed money or had absorbed losses ranging from hundreds of thousands of dollars to millions. The largest dispute involves the Concrete Collective, which is seeking more than $40 million in additional payment.
Before the center opened, Owen said the project had left his company with $3.9 million in losses tied to delays, rework, labor overruns and changing project demands. He said he spent months negotiating with Lakeside Alliance, the project’s construction manager, before going public after failing to reach a resolution. Against the backdrop of that larger dispute, Owen said the breaking point came around the time of the Obama Presidential Center’s opening celebration.
Owen said Adamson and Lakeside Alliance reached an agreement under which Adamson would provide two journeyman plumbers to perform last-minute "housekeeping" work on campus at premium nighttime rates. In return, Owen said, Adamson was supposed to receive part of its outstanding payment days before the center opened on June 19.
An email shows a Lakeside representative telling Owen that $100,000 would be released through Adamson’s May payment application. Adamson completed the requested work, but the payment did not arrive on time, according to Owen, who said it was the company's breaking point and left him with no choice but to suspend operations on June 25.
"We negotiated it in good faith," he said. "Against my better judgment, I agreed [to do the work]. 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 added.
Owen has escalated his nearly $4 million payment fight.Documents reviewed by Fox News Digital show that Marsh-Adamson filed a $1.72 million mechanic’s lien against the Obama Presidential Center property, alleging it remains owed money for plumbing work performed on campus.
Owen said he had initially avoided filing a lawsuit or lien while attempting to negotiate a resolution."I’m not a litigious person, but at the same time, our legal system is there to protect the small guy," he said. "I’m just going to have to fight this out legally from here on out, and these aren’t cheap costs."
Last week’s payment will be deducted from the $1.72 million, he said. Lakeside Alliance, a joint venture led by Turner Construction and four Black-owned Chicago construction firms, served as the project’s construction manager. The other firms are UJAMAA Construction, Powers & Sons Construction, Brown & Momen and Safeway Construction.In a previous statement, Lakeside said approximately 475 contractors worked on the center.
In its latest response, the alliance pointed to the project’s scale and said "contractual closeout continues long after the doors have opened" on major projects of such complexity." Lakeside Alliance remains committed to working through all outstanding matters to successfully close out the project," a spokesperson said.
Lakeside Alliance did not directly address Owen’s allegations, the layoffs or the $1.72 million lien. The Obama Foundation, former President Barack Obama’s private nonprofit organization that oversees the construction, said Lakeside was responsible for managing and paying subcontractors and that the foundation had no outstanding disputed charges with the alliance.
While it did not directly address Adamson’s allegations, the foundation said its financial support for firms working on the project exceeded industry standards. "Our commitment began with a 15-day payment cycle, which is largely unheard of in major construction projects," the foundation said in a statement, adding that it sometimes accelerated payment timelines or advanced payments months before work was completed.
The center has also faced scrutiny over its soaring price tag and promised taxpayer protections. Construction costs, initially projected at approximately $350 million, had climbed to $830 million by 2021 and have since reportedly surpassed $1 billion.Meanwhile, just $1 million has been deposited into a promised $470 million reserve intended to protect Chicago taxpayers if the center encounters financial trouble.
Those questions have drawn added scrutiny because the Obama Foundation secured the 19.3-acre Jackson Park site through a 99-year lease requiring a one-time $10 payment. Owen said the ordeal has left him financially and emotionally drained and uncertain whether he will ever restart Adamson Plumbing.
Owen argued that Chicago’s proud protest culture had been conspicuously absent and that the reaction would have been markedly different if the project were associated with figures such as Elon Musk or Ken Griffin, the Chicago billionaire whose name adorns the neighboring Griffin Museum of Science and Industry."There would be holy hell to pay," Owen said. "They would be picketing. They would be storming the castle."
Owen also singled out Illinois Gov. J.B. Pritzker, questioning why the pro-union governor had not addressed the layoffs or payment disputes. "But he hasn’t said anything publicly about the union companies at the presidential center getting stiffed," Owen said. "And it bothers me."
Owen said he was not accusing former President Barack Obama of personal responsibility but believes the foundation should publicly acknowledge the subcontractors’ complaints and help seek a resolution. "It’s become perfectly obvious to me that the ownership group there — they truthfully just don’t care," he said. "I don’t know any other way to say it." Owen said contractors had held out hope that their disputes would be resolved once construction ended. "But I think a lot of us out there, the main subcontractors, all still had this feeling that it was going to be worked out in the end — until it wasn’t," he said.
Now, with Adamson’s future uncertain, Owen said the project has left him facing a personal turn he never saw coming."I mean, the only leverage I have now is just to continue speaking out and see where it goes," he said. "But my career, it’s funny, I’m going to have to go find a job, which is fine. It’s just that I did not anticipate the completion of this project would take this turn."