largest liens filed in los angeles county in june 2019

So you’ve just invested nearly $33M into a massive construction project in one of the largest markets in the U.S. and you’re not getting paid…what do you do? You’ve bought the materials, hired the subs, paid your crew, and are closing out the project, but you’re just out that $33M you were promised. The largest liens filed in Los Angeles County, CA in June 2019 prove this happens more often than it should.

That sounds like a real-life nightmare for a construction company. But unfortunately, it’s happening to many companies all over the country. The best thing to do in this situation is to file a mechanics lien when you haven’t been paid for your work at a jobsite. This month’s breakdown of million-dollar liens filed in Los Angeles County, California has one major common theme with a construction project in downtown LA causing havoc for many contractors. Let’s check out the six largest liens filed in Los Angeles County, CA in June. 

Largest liens filed in Los Angeles County in June 2019

Diversified Panel Systems, Inc. Hired by Controlled Environments Construction

Lien Amount: $32,845,090.00

Claimant: Diversified Panel Systems, Inc.

Hiring Party: Controlled Environments Construction 

Property Address of Lien: 15210 Nelson Ave, City of Industry, CA

Property Owner: KACR Property, LLC & Supreme Foods

Diversified Panel Systems, Inc. filed a lien of $32,845,090.00 on 15210 Nelson Ave, City of Industry, CA, a property owned by KACR Property, LLC & Supreme Foods after being hired by Controlled Environments Construction. Diversified Panel Systems, Inc. is based out of Oxnard, CA and has been in business for over 100 while offering custom design, engineering, manufacturing custom of cold storage buildings and refrigeration systems. Even if you have a good construction management system in place, construction payment problems can always arise. Big projects such as this job come with big payment risks and when $32 million dollars is on the line you better have everything in-check. In this case, Diversified Panel Systems provided Controlled Environments Construction with cold storage panels.

Acco Engineered Systems, Inc. Hired by Lendlease Construction

Lien Amount: $18,898,044.00

Claimant: Acco Engineered Systems, Inc. 

Hiring Party: Lendlease Construction 

Property Address of Lien: 1101 South Flower Street, Los Angeles, CA

Property Owner: Oceanwide Plaza LLC

Get ready to hear this same property owner, hiring party, and property address of lien, because it will all be the same for the final five top liens for Los Angeles County in June. Lendlease Construction once again finds itself tied to many Los Angeles County liens as it also did back in May, and it is also once again tied to Oceanwide Plaza LLC as the jobsite’s property owner back again at 101 South Flower Street, Los Angeles, CA property. Acco Engineered Systems, Inc. provides mechanical design and construction services. Based out of Pasadena, CA, the company has been in business since 1934 and has 22 offices in the country. Acco Engineered Systems furnished and installed mechanical systems for the Oceanwide Plaza jobsite, and is still owed almost $19M at $18,898,044.00. Per Wikipedia, the Oceanview Plaza jobsite consists of three towers directly across from the Staples Center in downtown LA. Due to “financing issues,” things have been seriously delayed. Construction started in 2015 and is slated to open in 2020.

Enclos Corp. Hired by Lendlease Construction

Lien Amount: $7,178,930.19

Claimant: Enclos Corp.

Hiring Party: Lendlease Construction 

Property Address of Lien: 1101 South Flower Street, Los Angeles, CA

Property Owner: Oceanwide Plaza LLC

The third largest lien was filed by Enclos Corp. for $7,178,930.19. The company is based out of Eagen, MN and it is described as a specialty glazing and exterior facade contractor. Enclos is working alongside Lendlease on all three towers being simultaneously built at 101 South Flower Street, Los Angeles, CA jobsite. All three towers being built at this major LA jobsite will consist of more than 13,500 enclosure units resulting in roughly 600,000 square feet of curtain wall, according to Enclos Corp.’s projects page. Enclos has provided design-assist for each building including acoustic, visual, and performance mock-ups. The towers will feature operable windows, shadow boxes, and sun-shading features. According to the lien paperwork, Enclos also provided glazed aluminum assemblies as well as exterior waterproofing wall lab testing.

Bapko Metal, Inc. Hired by Lendlease Construction

Lien Amount: $5,237,952.07

Claimant: Bapko Metal, Inc. 

Hiring Party: Lendlease Construction 

Property Address of Lien: 1101 South Flower Street, Los Angeles, CA

Property Owner: Oceanwide Plaza LLC

Coming in at number four on our list is Bapko Metal, Inc. The structural steel, miscellaneous steel, stairs and architectural metal contractor filed a lien for $5,237,952.07. Bapko Metal, Inc. has been based out of Orange, CA since 1978, so they should surely have proper financial procedures in place when payment situations arise such as this case – granted this is a $5M lien. The company provides many services, including engineering consultations, construction planning, pre-construction design, and more. For this specific case with Lendlease, Bapko Metal filed their lien for not receiving payments based on their contributions of “miscellaneous metals and structural steel” to the Oceanwide Plaza jobsite.

Sharpe Interior Systems, Inc. Hired by Lendlease Construction

Lien Amount: $4,285,520.00

Claimant: Sharpe Interior Systems, Inc. 

Hiring Party: Lendlease Construction 

Property Address of Lien: 1101 South Flower Street, Los Angeles, CA

Property Owner: Oceanwide Plaza LLC

The fifth largest lien for Los Angeles County, CA was from Sharpe Interior Systems, Inc. for the amount of $4,285,520. Sharpe Interior Systems is a drywall contracting firm that is based out of Valencia, CA. The mispayments from services in which Sharpe Interior Systems provided for Lendlease at this massive Oceanwide Plaza LLC jobsite at 1101 South Flower Street, Los Angeles, CA stretches back to at least January 1, 2019. That’s a long time for a company to never get paid. According to the lien affidavit, Sharpe Interior Systems contributed metal studs and drywall on the new construction project. Sharpe Interior Systems is yet another specialty contractor being involved in this cluster of a lien case against Lendlease Construction at  Oceanwide Plaza. 

Woodbridge Glass Incorporated Hired by Lendlease Construction

Lien Amount: $3,535,710.50

Claimant: Woodbridge Glass Incorporated 

Hiring Party: Lendlease Construction 

Property Address of Lien: 1101 South Flower Street, Los Angeles, CA

Property Owner: Oceanwide Plaza LLC

The sixth and final lien from our top six largest liens filed in Los Angeles County, CA in June of 2019 comes from Woodbridge Glass Incorporated. The company filed a lien of $3,535,710.50 for their work provided at the 1101 South Flower Street, Los Angeles, CA jobsite owned by Oceanwide Plaza. Woodbridge Glass Incorporated is located in Tustin, CA and provide three main areas of service: design build, engineering, and contract glazing. According to the lien paperwork, Woodbridge Glass Incorporated filed this $3.5M lien for glass, glazing, installation, labor, and materials they contributed to the Oceanwide Plaza project.

Oceanwide Plaza Construction Project in LA totals out to $39,136,156.80 in mispayment money for June 2019.

It’s evident the Oceanwide Plaza construction job, run by Lendlease Construction, is a massive problem happening in downtown Los Angeles So what exactly is this nightmare of a jobsite? First of all, the Oceanwide Plaza is looking like a ghost town. As of May, work had been stalled on the jobsite for four months because Oceanwide Holdings, the lead developer of the project, needed to “restructure its capital.” The entire project includes three towers over a large podium and is the first project in the United States for Beijing-based Oceanwide Holdings, which clearly isn’t going too well. The North tower will become a mixture of luxury hotels and condominiums. Hyatt’s Park Hyatt will brand the tower. The other two towers will both be 42 stories high and will include luxury condominiums, for a total of 504 residences at the Oceanwide Plaza location. The large podium will offer eight levels of parking and retail space. According to Los Angeles Downtown News, retail and restaurants will occupy 166,000 square feet of the project. The rest of the area will make room for 1,440 parking spaces.

Here’s the rundown of the data: 468 liens were filed by 328 different businesses for a grand total of $108,836,455.57 for the month of June in Los Angeles County. That’s quite a difference compared to the $62,438,962.53 in total liens filed in LA County back in May of this year. The smallest lien filed in June was $520. 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 nearly $72M. Not having a valid California contractors license could also explain why even more liens were rejected due to improper filings. Making sure you get paid for the construction 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.