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Published June 23rd, 2010
Waiting to Get Paid for Library Work
By Cathy Tyson
Side view of Lafayette Library and Learning Center Photo Cathy Tyson

When the Lafayette Library and Learning Center opened to much fanfare in November, there were still a few minor finishing touches to be completed. Fast forward seven months - the building is substantially complete but some of the subcontractors on the project are still awaiting payment.
Looking to remedy the situation, seven subcontractors filed Stop Notices with the Lafayette Redevelopment Agency. As of press time four of those companies have filed releases, but three are still outstanding. A stop notice is a lien on construction funds.
One of the subcontractors, AHC Glass, furnished $1,052,980 worth of windows, doors and more to General Contractor Overaa Construction. To date they have been paid $802,980, and are owed $250,000.
Delta Electrical is in a similar situation - they performed $4,655,431 worth of electrical and communications work, roughly three quarters of the bill has been paid, but $1,022,938 is still outstanding.
Overaa Project Manager Tim Fitzpatrick describes the Library as a, "Large complicated job with change orders along the way." He says he is meeting with the City on a regular basis, actively pursuing a resolution, "There's a lot going on behind the scenes to get this settled out."
In the meantime, Blue's Roofing has filed suit in Contra Costa County Superior Court in March against Overaa Construction. Overaa filed a Cross Complaint. Now the two parties are awaiting a Case Management Hearing scheduled for July.
"It is just appalling to me that in such lean times small local Bay Area businesses that employ local folks are not getting paid for their work, and that situation affects everyone, the business and their employees," said resident Karen Jones.
The city is withholding the customary 5% of the contract price due to the contractor to obtain contract compliance.
Melanie Donnelly, attorney for the City and the Redevelopment Agency, said this situation is "pretty common," and that there are, "punch list items that remain," so the project is not yet finished. "Once the project is complete, the Agency will evaluate any claims that it may have and then will pursue the course of action that the City Council determines is in the Agency's/public's best interest with regard to releasing the retention."

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