Six months after construction was completed on a new 150-room Canopy by Hilton in West Palm Beach, four contractors that helped build the hotel are still awaiting payment for their work.
As of September 8, 2020, one general contractor and at least three subcontractors are allegedly owed $1.38 million in mechanics lien claims, according to lien affidavits filed with the Palm Beach County clerk’s office. Mechanics liens provide a security interest for unpaid contractors on properties they service.
Verdex Construction, the project’s general contractor, placed the largest lien claim against the 5-parcel property, which was valued at just over $1 million in August of 2020. The GC is now named in at least three mechanics lien claims from the remaining unpaid subcontractors on the same project, totaling $371,854.15.
The lien affidavits list DVI Cardel West Palm Beach Hotel, LTD as the property owner, which has a leasehold interest at the West Palm Beach Canopy by Hilton.
In early March of 2020, the Canopy by Hilton in West Palm Beach, Fla. opened to the public prior to state and government-mandated shutdowns due to the coronavirus pandemic. According to the Palm Beach Post, this is the first and only Canopy by Hilton located in the Sunshine State.
Each mechanics lien was filed pursuant to Florida rules governing mechanics lien claims.
Four Contractors Owed $1.38 Million
Four contractors are allegedly owed $1,388,950.82 in combined unpaid work claims against the Canopy by Hilton, located at 380 Trinity Place, West Palm Beach, Fla.
General contractor Verdex Construction’s lien claim was filed on August 13, 2020, against DVI Cardel West Palm Beach Hotel, which totals $1,017,096.67 in unpaid work.
The GC’s original contract with the property owner was valued at $37,722,739.67. Verdex Construction first began servicing the property in late December of 2017, and as of the date of their lien filing, the GC was still performing work.
The GC’s lien follows two earlier liens filed by subcontractors. On March 28, 2020, BCM Construction filed a claim for $76,869.75 for site work and paving. BCM Construction’s original contract totaled $758,697.50.
On April 6, 2020, subcontractor G & E Florida Contractors, LLC filed the second-largest lien against Verdex Construction, with an unpaid work claim valued at $106,282. The subcontractor furnished materials and labor to the project between January of 2018 and February of 2020. The lien affidavit also states that G & E Florida Contractors’ original contract with Verdex Construction was valued at $8,602,359.85.
The largest lien claim against Verdex Construction to date was filed in September of 2020 by subcontractor Thyssenkrupp Elevator Corporation for their contributions to the Canopy by Hilton. The subcontractor’s lien affidavit states they are still owed $188,702.40 after installing and modifying elevators and escalators between April of 2018 and July of 2020.
Additional Liens Placed on Canopy by Hilton Project in Frisco, TX
At least one other Canopy by Hilton property has also recently troubled contractors with non-payment from a project located 26 miles north of Dallas, TX.
As of August of 2020, eight mechanics lien claims have been filed against a Canopy by Hilton in Frisco, TX.
The eight mechanics lien claims totaled $2.66 million in unpaid construction work. Like the West Palm Beach property, this Canopy by Hilton was also a 150-room facility. According to the lien affidavits, the property owner was listed as Supreme Bright Frisco III, LLC, a Texas developer.