|
By Mike Bodine
Register Staff
10-24-2009 Subcontractors are still not getting paid by Beebe Construction following the completion of the Grove Street Improvement Project in Bishop. Stories differ as to where the problem stems from, but it has been reported that all the contractors should be paid by the end of the month.
The payment delays are caused by the subcontractors issuing “stop notices,” or notice that they are not getting paid. When just one stop notice is issued, the payments are then turned over to a bond company to determine who is to get paid and how much.
Owner Loren Beebe told The Inyo Register on Oct. 14 that the payments had been stopped because 7-11 Materials of Bishop had delivered “subpar” materials for the job. Beebe said it was 7-11 that had issued the stop notices with the hopes that the job would pass a state audit and it would not be responsible for penalties.
Robert Saia, director of marketing and business development for 7-11 Materials out of Central California, said Beebe’s accusations about faulty materials are false.
Dave Grah, Bishop Public Works director, confirmed as much on Thursday, saying that all tests performed on the materials have passed inspection.
Grah said that Beebe is not paying its subcontractors because it’s awaiting approval by the city for the materials.
But, “the bottom line is, the materials passed,” Grah said.
Grah reiterated that Beebe has been, up until this latest incident, one of the best contractors the city has ever worked with.
Beebe said Thursday, Oct. 22, that “at the end of the day, the materials met the specifications,” but 7-11 did not deliver the mix required in the contract. Beebe explained that because of the mix, Beebe had extra work to perform, “to try and accommodate the same outcome.”
Beebe said 7-11 must have been afraid that his company might backcharge it for the extra work. Beebe said he told 7-11 he wouldn’t backcharge, but 7-11 filed the stop notices anyway.
Saia said that Beebe has been paid by the city – $1.1 million of the $1.2 million project, essentially paying for all the materials from 7-11. Saia said it was Beebe that wanted to wait until the audit was performed before paying 7-11.
Saia said he told Beebe that no one has a problem with the materials but still no payment was made to 7-11. “We’re not going to stand around and not get paid,” Saia said, explaining that the stop notices were filed shortly thereafter.
Beebe said the audit from the state was received on Monday, Oct. 19, and all specifications were met. This means there will be no penalties, and the bonding company will begin issuing checks, soon. He added that if 7-11 hadn’t filed the stop notices, everyone would have been paid by now.
Beebe said the subcontractors have been paid as the job has progressed, except for a couple of the last contractors on the job, and 7-11.
Saia said he has talked to Beebe in person about this situation, with the offer of 7-11 dropping the stop notices if Beebe would cut 7-11 a check, but that never happened.
Beebe explained that once a “stop notice” has been issued, payments are limited to being issued via the bonding company, only.
Beebe said 7-11 has to “own up to its own mistakes.”
Saia said 7-11, which recently took over the Hiatt/Ready mix aggregate plants in the Bishop area, has plans of being in the area a very long time and that 7-11 “strives to be a better supplier.”
|
