While expanding their raw materials recycling business throughout the U.S., German firm ELG Metals’ new venture in Houston, TX has left three contractors struggling to collect millions in combined mechanics lien claims.
As of January 15, 2020, at least three contractors, including the General Contractor, have placed lien claims on ELG Metals’ 10,000-square-foot Buffalo Bayou facility, located just 6 miles east of downtown Houston. The contractor claims total just over $2 million combined in lien filings. A mechanics lien prevents a property’s sale or refinancing until the claimant contractor has received full payment for their work.
According to the lien affidavits, ELG Metals’ new 100ft x 100ft facility and dock space will house barges used to transport their recycled raw materials for the stainless steel industry. The entire property in which the barge facility is constructed upon just over 8 acres of land. ELG Metals expects to process “a minimum of 6,000 tons of stainless steel scrap and superalloys” per month for global distribution.
ELG Metals did not respond to requests for comment.
Three Contractors Owed a Combined $2M at ELG Metals Project
The three contractors are owed a total of $2,049,879.20 for construction taking place at ELG Metals’ recycling facility, located at 600 North Greenwood St, Houston, TX.
General contractor Orion Industrial Construction, LLC and two additional subcontractors have placed the three lien claims on the property since September of 2020.
On August 14, 2020, Orion Industrial Construction placed the largest claim to date against ELG Metals’ property in Houston, which totals $1,780,916 in unpaid work. The GC began work on the project in January of 2018.
According to the Orion Industrial Construction’s lien affidavit, their contract with ELG Metals totaled $13.8M for general contracting duties, which included grubbing and clearing land, dredging 18,000 yards of seabed, constructing a barge dock and stormwater tank, concrete paving, and the construction of a metal warehouse building.
Orion Industrial Construction’s contract with ELG Metals broke the project into three phases: dock construction and dredging, concrete foundations and structures, and dredge material placement.
The GC is now named in at least one mechanics lien claim from a subcontractor on the ELG Metals project in Houston.
Orion Industrial Construction did not respond to a request for comment.
On September 10, 2020, subcontractor Slack & Co. Contracting, Inc. filed a mechanics lien totaling $267,594.50 against Orion Industrial Construction. As stated in the lien affidavit, the subcontractor provided site work such as clearing and grubbing, grade work, and paving excavation.
The third unpaid work claim placed on the property was filed by subcontractor Cherry Crushed Concrete, Inc. against Slack & Co. Contracting. In January of 2020, Cherry Crushed Concrete claimed they were still owed $1,368.70 for supplying cement stabilized materials.