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Oceanwide Plaza Construction Project in Los Angeles Attached to 3 of the 5 Largest Liens. 

Imagine you’re awarded a construction contract, bought the materials, hired the subs, paid your crew, and are closing out the project… but the $21M you were owed for your work never comes? What would you do?

You can’t take back the work you’ve done, or tear down the structure you just built unless you want to go to jail. One thing you can do in a situation where you aren’t getting paid is to file a mechanic’s lien. This month’s breakdown of million-dollar liens filed in Los Angeles County, California has some heavy hitters, a few repeat offenders, and a whole lot of cash flow problems. Let’s dig into the 5 biggest liens filed in Los Angeles County California in May of 2019. 

Standard Drywall Hired by Lendlease Construction

Lien Amount: $21,243,544.00
Claimant: Standard Drywall
Hiring Party: Lendlease Construction Inc.
Property Address of Lien: 1101 S Flower St Los Angeles CA
Property Owner: Oceanwide Plaza LLC

Standard Drywall filed a lien for $21,243,544.00  on 1101 S Flower St Los Angeles CA, a property owned by Oceanwide Plaza LLC at after being hired by Lendlease Construction Inc. Standard Drywall Inc. (SDI), is one of the biggest drywall subcontractors in the United States and typically works on big projects like hotels, sports arenas, hospitals and schools. After being in business for over three decades, they likely have some great payment processes in place to protect themselves from slow or non-payment. Even if you have a good process in place, things can go wrong. Big projects come with big payment risks and when twenty one million dollars is on the line you better have all your t’s crossed and i’s dotted. We’re rooting for you and hope you get paid for the work you’ve done, SDI.  


Standard Drywall Hired by Kovach Building Enclosures

Lien Amount: $8,248,460.00
Claimant: Standard Drywall
Hiring Party: Kovach Building Enclosures
Property Address of Lien: 1101 S Flower St Los Angeles CA
Property Owner: Oceanwide Plaza LLC

Standard Drywall also claims the number two spot for largest lien filings in May of 2019. This lien was on the same property as the biggest one, 1101 S Flower St Los Angeles CA, but they were hired by Kovach Building Enclosures. The Oceanwide Plaza a gigantic project. According to wikipedia, this mixed-use complex consists of three towers directly across from the Staples Center in downtown LA. Construction started in 2015 and is slated to open in 2020, though things have been delayed due to “financing issues.” There are certainly some cash issues when a single company has to file close to $30 million in liens in a single month. Ouch! Although cash flow is most likely the issue here, there’s also the possibility of “visibility problems”, as well. When projects are this big and complex with hundreds of stakeholders, it’s possible the people cutting the checks are missing the information they need to get paid.    

Oceanview Tower - Los Angeles CA Under construction


Nevell Group Hired by Lendlease Construction

Lien Amount: $3,873,588.42
Claimant: Nevell Group Inc
Hiring Party: Lendlease Construction Inc.
Property Address of Lien: 1101 S Flower St Los Angeles CA
Property Owner: Oceanwide Plaza LLC

Rolling in at #3, Nevell Group Inc. filed a lien on, you guessed it, that same property: Oceanwide Plaza after being hired by Lendlease Construction Inc. The Nevell Group is a California based, award-winning subcontractor that does some really beautiful commercial wall systems for the interiors and exteriors of large buildings. Check out their website to see some of their projects and prepare to be amazed. The lien states this massive project included “metal framing, drywall, lath, exterior insulation and finish system”, which probably means they had a lot invested in materials and labor to execute the work. It’s hard to imagine how almost $4M of unpaid work would affect a company’s cash flow, the ability to take on new projects and pay their employees. Rough. Good luck getting paid for all of your hard work Nevell Group!


Control Air Conditioning Corp Hired By AECOM Tishman

Lien Amount: $1,935,471.07
Claimant: Control Air Conditioning Corporation
Hiring Party: AECOM Tishman
Property Address of Lien: 1200 South Figueroa Los Angeles CA
Property Owner: Cirea 1200 LA LLC

After being hired by AECOM Tishman, a global general contractor, to assist with the HVAC system, Control Air Conditioning Corporation with offices in Anaheim CA filed a lien on 1200 South Figueroa Los Angeles CA for a total of $1,935,471.07.  The project at the Cirea LA apartments is located only a block away from the Oceanwide Plaza. What’s up with this section of Los Angeles? It appears to be the Bermuda triangle of payment problems.

 


Philmont Managment Inc. Hired by 450 Western LLC

Lien Amount: $1,835,561.32
Claimant: Philmont Management Inc.
Hiring Party: 450 Western LLC
Property Address of Lien: 450 S. Western Ave. Los Angele CA
Property Owner: 450 Western LLC


Philmont Management Inc. with offices in Valencia, CA filed a lien on the property address of 450 S. Western Ave. Los Angeles for the amount of $1,835,561.32. Philmont Management is the first general contractor on our list of million dollar liens in Los Angeles and offers a wide range of services in the construction industry. Most notably, the GC focuses on new construction, tenant improvement and adaptive reuse for live/work buildings.  The property is owned by 450 Western LLC and the work was performed on the food court and Etude Salon and Kiosk. In explaining the type of work performed, lien states only generalities like: “Material, Labor and Equipments” in the description of work, so it’s hard to tell exactly what type of work they were doing. One thing is for certain – they haven’t been paid for over $1.8M worth of work. While   


The five largest liens are more than half of all Los Angeles mechanics liens in May 2019.

Construction starts are growing in Los Angeles and there are more cranes than any other US city. With that much growth, you can be sure cash flow problems are bound to pop up. If you ever feel like payment isn’t a problem in construction, remember that the five largest liens in a single month ring in at more than $37M. It’s hard to not to think about all of the other liens and payment problems that must be happening. Here’s the rundown: 396 liens were filed by 281 businesses for the amount of $62,438,962.53 in the month of May alone. The smallest lien claim was made for $512.82. You can also assume that a good number of liens were rejected due to improper filings, or not having a valid California contractors license. 

Winning bids and doing great construction work is very important, but making sure you get paid for the work you do is the only way you can keep your business running and growing. Visit our contractor search page to see the payment profile and recent lien and notice the history of your customers. Can’t find who you’re looking for? Make a request for a specific contractor. We are adding hundreds of contractor pages every month to help everyone keep payment under control.

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The Five Largest Liens Filed in Los Angeles County California in May 2019
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The Five Largest Liens Filed in Los Angeles County California in May 2019
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See the largest liens filed in Los Angles County, CA in May 2019. Who filed them, who owns the property and analysis of all mechanics liens filed in this month.
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