Explaining What We Know About the Obama Presidential Center Contractor Disputes
Q: Does Barack Obama still owe contractors or subcontractors money for work done on his presidential library in Chicago?
A: Some subcontractors have said they were not paid for their work. The Obama Foundation told us that the construction project manager (Lakeside Alliance) has the “primary responsibility” to “hire and manage all the subcontractors for the project.” The foundation said it has “no outstanding disputed charges” with Lakeside Alliance nor “direct legal agreements or contracts” with subcontractors.
This is usually how big construction jobs work. The primary contractor contracts with the client & then the primary contractor is responsible for contracting, managing & paying the subs.
As a general contractor of over 35 years, it is the GC's responsibility to hire/manage/pay the subcontractors. The GC is "bonded", meaning bills are guaranteed to be paid but any subcontractor knows their is a timeframe for filing claims.