JONESBORO, AR (KAIT) –
There is at least $1.5 million owed to subcontractors who are helping to build a convention center along I-555, records indicated Thursday.
According to reports obtained by Region 8 News, a mechanics lien for $1,536,187.80 was filed May 10 by Construction Network Inc., or CNI, against the Northern Arkansas Hotel and Convention Center project.
Typically, a mechanics lien is filed by subcontractors (or companies that help to build a project) including contractors, material suppliers, workers, architects and others who are seeking value for the work they do.
The liens are filed mainly by subcontractors, who in turn, can file a lien against a contractor. A contractor, with the May 10 filing as an example, can then file a lien against the project owner to collect.
The $1.5 million figure is the total amount owed and does not include any new liens filed against the project, which is being built by Illinois-based Keller Management Hyatt Hotel and Convention Center, those with information on the situation said.
In April, Mid-South Steel filed suit against CNI, alleging the company had not been paid for some of the materials that that steel company supplied for the project.
According to a complaint, Mid-South Steel, which is seeking $429,660, alleged that CNI “failed and refused to make payment to Plaintiff (Mid-South Steel) on the contract and is in default on the contract.”
CNI responded that it had not been paid by the convention center owner and could not pay Mid-South Steel. CNI also said in the complaint that the original agreement between them and Mid-South Steel had a “paid if paid” clause.
With the clause, CNI says if it has not been paid by the convention center group, CNI is not legally obligated under the contract to pay for the material.
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