Unpaid material and labor claims worth $2+ million mount on the already struggling luxury condo complex in Palm Beach, Florida.
The latest lien filed against San Matera The Gardens was by Centimark Corp for $941,000.00 in April 2020. Centimark Corp is filing for unpaid materials and labor associated with repairing the extensive water damage to more than 600 units on the 100-acre complex. This latest claim is just one of the nine total claims filed against the property spanning the last three years.
The most significant claim on the Palm Beach Gardens complex – for $1.49 million – was filed in July 2019 by Huston based company, Max Access LLC. Max Access LLC supplied scaffolding to the project. This 2017 claim is also after accepted credits and various adjustments made to the original contract.
The mounting liens against Palm Beach Gardens are part of the larger issue with the complex. The resident have reportedly required drastic repairs to their homes since the initial construction of the complex in 2005.
Shortly after residents moved into their new homes, extensive water damage led to mold infestations and swollen floors.
The residents took builder Kolter Homes, a large luxury property developer based in South Florida, to court. Kolter and the subcontractors reached a $22.5 million settlement in 2016 with the residents over construction defects, including extensive leaking through sliding glass doors, windows, and roofs, rooting wood and cracked slabs. Kolter allegedly attempted to hide all these mistakes behind stucco walls.
After the 2016 settlement with the Palm Beach Gardens residents, Kolter Homes faced another lawsuit in 2018 over construction and design defects on a property in South Florida.
The residents of Palm Beach Gardens are still reportedly living with mold infestations, leaky roofs, and swollen hardwoods.
Florida Structural Group started repairing the “nightmare damage” to the complex in 2017. Work progressed for 18 months until Florida Structural Group walked off the job, citing issues with payment.
A majority of the mechanics lien claims against the property are for the full amount of the signed contract or the majority of the agreed-upon contract.
Five out of the nine liens are filed from suppliers for underpayment (or in most cases, no payment at all) for materials furnished for the repairs. Foundation Building Supplies, HD Supply Company, Sherwin-Williams, National Tool Supply, and local Quicksand South Florida seek $33K in unpaid materials for the repairs, with all five claims filed in April 2019.
Since the departure of Florida Structural Group, the management company and the homeowner’s board have been taking bids from other contractors in hopes of getting the repairs started again. In the meantime, residents report still living in hazardous conditions.
There is reportedly little communication between the management company and the residents. Residents say they received no warnings on the contractor’s issues and the suppliers before the sudden halt in April 2019.
As one resident told The Palm Beach Post in June 2019, “We had to start a letter-writing campaign before the board finally provided us with some information, and it was no more than what we had already found out from the court documents or figured out on our own.”
Maryann Morrison, President of the homeowner’s board, stated in the same article that the residents will have information when the board has something to tell them.
There has been no update on the property notice board concerning when continued construction on the complex. Residents and unpaid contractors are left waiting on a resolution.
Update Sep. 11, 2020: Centimark and Max Access have both filed a number of partial lien releases, effectively amending their original claims. Other contractors and suppliers, including National Tool, Sherwin-Williams and others have also released their lien claims, either partially or in full. A lien release is used to release the claim to the extent that payment has been made.