S.A.-Construction on Grand Hyatt could stop

SAguy · #1 Posted **Jul 18, 2007, 11:16 AM**

I-Team: $4 million owed to subcontractors could shut down Grand Hyatt construction

Web Posted: 07/18/2007 04:05 AM CDT

Barry Davis
KENS 5 Eyewitness News

The KENS 5 I-Team has learned that more than $4 million owed to more than a dozen subcontractors could shut down construction on downtown's Grand Hyatt hotel.

Chris Godby, with Formwork Services, Inc., said his company hasn't been paid since April. Formwork Services provides forms for the concrete being poured at the $250 million project.

Godby said the general contractor, FaulknerUSA, said US Structural Concrete was supposed to pay.

"They're in excess of $620,000 and counting," Godby said. "(FaulknerUSA said) they haven't been submitted draw requests, and they said until they do they couldn't do anything for us."

But Godby isn't alone.

"(Faulkner USA) gave us a check in June, but it was for March invoices," said Daniel Gutierrez, co-owner of Construction & Highway Supplies of Texas.

Documents show Gutierrez's company is owed $80,000.

About a dozen small companies say US Structural Concrete, the main subcontractor on the job, owes them more than $4 million. Godby and Gutierrez aren't waiting for their money any longer — they are filing a lien against the property, guaranteeing payment.

FaulknerUSA is launching an investigation and told the I-Team they've been paying US Structural Concrete regularly since the project began, and in fact, may have even overpaid them to the tune of more than $300,000.

In a $250 million project, $4 million isn't a lot. However, everyone, including Gutierrez, wants to know where the money is.

"I hope it (means I own a piece of the project), I guess. But I'd rather have my money than own a piece of something that's not finished," he said.

The missing money could cause the project to stop. Several of the subcontractors say if they don't get paid soon, they'll pull out of the project.

Complex01 · #2 Posted **Jul 18, 2007, 4:03 PM**

Oh if that is the case that would be a joke. Imagine a huge unfinished building, which would be more of an eye sore and shame then that pending/who knows whats happening apartment building off broadway. I hope it keeps on trucking, it really is making a difference on the skyline...

jaga185 · #3 Posted **Jul 18, 2007, 5:13 PM**

I'm beginning not to like Faulkner, they have cookie cutter designs, they changed the design, drastically, when the proposal changed from a hotel to condo/hotel, and now this. They seem a little shady if you ask me.

21bl0wed · #4 Posted **Jul 18, 2007, 5:42 PM**

Yea i saw the report on the news last night...only in san antonio woo i love my city.

SAguy · #5 Posted **Jul 18, 2007, 9:21 PM**

I believe the city has some sort of clause/agreement that would penalize Faulkner USA if the project was completed on time. I don't remember the exact details but I know when the city chose Faulkner USA the city wanted to protect itself from something like this.

matttwentyeight · #6 Posted **Jul 19, 2007, 1:36 AM**

if the project isn't finished by feb 08 faulknerusa owes the city thousands of dollars a day... i dont know the number i just know its more than i could fathom to make in a day.

NBTX11 · #7 Posted **Jul 19, 2007, 3:45 AM**

I just heard a report on KENS 5. If I heard it correctly, It is not Faulkner USA's fault. One of their subcontractors who Faulkner paid was the one who isn't paying the bills and distributing funds to other subcontractors. Faulkner supposedly filed a lawsuit against this subcontractor (US structural concrete, I think), who did not pay the other subs. Faulkner had paid who they were supposed to, and a subcontractor (supposedly) squandered, or didn't account for $$. Any way, they said that Faulkner gauranteed future payments, and that work was scheduled to go on, no stoppage in construction for now.

KevinFromTexas · #8 Posted **Jul 19, 2007, 4:04 AM**

Quote:

Originally Posted by SAguy

I believe the city has some sort of clause/agreement that would penalize Faulkner USA if the project was completed on time. I don't remember the exact details but I know when the city chose Faulkner USA the city wanted to protect itself from something like this.

Yes, that's usually the case with any construction project. Especially with hotels and office projects since these are the most time sensitive. Remember, the hotel probably already has room rentals lined up. Same goes for office projects, tenants have to move out of another space at a certain date since they're under contract to do so, then into their new digs. They can't do it if it's not complete! Fines and fees would no doubt ensue.

I'm not a fan of FaulknerUSA either, but it looks like they may not be the trouble maker here.

Anyway, it's perfectly reflective of contractors' ethics. You can't trust them any further than you can throw one of their hammers at them. Believe me, I know from experience.

TXlifeguard · #9 Posted **Jul 19, 2007, 5:30 AM**

Yeah, this isnt all that unheard of in the construction business. When I worked in the office of a GC here in SA, it was explained to me that it was kinda the norm for invoices to get 60 to 90 days out. Some subs were better than others at submitting paperwork and such, and some GC's were better than other with their accounting. Just the nature of the beast.

When the then SBC Center was completed there were smaller subs who had waited over 6 months for payment. There was a big hullabaloo about it then too. What sucks is for the bigger subs, it really isnt too big of a deal, Thad Ziegler, VK Knowlton, etc. But it really hits the smaller guys real hard. They don't have the kind of liquidity to pay for a lot of the raw materials and then sit and wait for months for invoices to get paid. Just sucks for them.

Trust me tho, it will get finished. The line about construction stopping is KENS being dramatic and looking for a catchy lede.

BrownsvilleTx · #10 Posted **Jul 19, 2007, 7:53 PM**

Here in the RGV we've have had problems with FualknerUSA, which used to be called another name at the time, such as botched prison facilites, schools, and other projects costing Cameron County and Brownsville lots of money with shody quality work and materials. Then demanded that they be paid and the city and county of course demanded that the problems be fixed and so on. I still don't know what the outcomes of each were since it dissappeared from the media very conveniently.

When I first heard about FaulknerUSA working on the Hyatt, I thought to myself: Good Luck!! I definately don't like this compnay. And don't kid yourself if you think that they may not be at fault. They always would say that to try and get away with it.

adtobias · #11 Posted **Jul 31, 2007, 5:07 AM**

so have things stop or are they moving along now

sirkingwilliam · #12 Posted **Jul 31, 2007, 5:21 AM**

Nothing ever stopped. This was KENS taking nothing and making it into over sensationalized TV news. Basically what all television news stations do to get you to stay on their channel.

KevinFromTexas · #13 Posted **Jul 31, 2007, 3:52 PM**

Quote:

Originally Posted by sirkingwilliam

Nothing ever stopped. This was KENS taking nothing and making it into over sensationalized TV news. Basically what all television news stations do to get you to stay on their channel.

Yep. And it's funny since it ends up having the reverse effect.

Once I hear something in the news that I'm really interested in or else is "big" I usually flip to the next station to get even more info. Yes, I am one of those men who flips the channels.