Nearly one year after the project was completed, a general contractor hired to construct a $47.2 million Hilton Garden Inn located in Sunnyvale, California filed an unpaid construction work claim worth $5.7 million, according to the Santa Clara County clerk’s office.
The general contractor, Sundt Construction, reported in a press release on November 25, 2019, that the 6-story, 238-room Hilton Garden Inn Sunnyvale had been completed. By October 19, 2020, Sundt Construction had placed an unpaid construction work claim — known as a mechanics lien — against the Hilton Garden Inn Sunnyvale, which was reportedly the largest hotel to be constructed in Santa Clara County in 2019.
When a contractor files an active claim, the mechanics lien attaches to a property and can hinder it from being bought or sold, as well as preventing the property owner from refinancing. Once the contractor has received payment for their work, the lien claim can be released from the property title.
A representative from Sundt Construction has yet to respond to a request for comment regarding the lien filing.
Santa Clara County records also indicate that there are no additional active mechanics lien filings placed on the Hilton Garden Inn Sunnyvale as of December of 2020.
The unpaid construction work claim was filed in accordance with California mechanics lien statutes.
General contractor claims they are owed $5.7M at Sunnyvale Hilton Garden Inn
Sundt Construction claims they are still owed $5,797,837.32 for their general contracting duties in constructing the Hilton Garden Inn Sunnyvale, located at 767 N Mathilda Ave, Sunnyvale, CA — just over 10 miles northwest of downtown San Jose.
The GC’s lien affidavit states the claim was filed directly against property owner, OTO Development of Spartanburg, South Carolina, pursuant to a contract between the two parties.
A representative from OTO Development has yet to respond to a request for comment.
Sundt Construction’s lien was claimed for labor which included concrete services, framing, mechanical services, electrical services, plumbing services, fire and life safety, and additional labor and materials provided to construct the facility.
According to Sundt Construction’s press release from November 2019, the Hilton Garden Inn Sunnyvale “provides a mixed-occupancy space with meeting rooms, bars and luxury lounges, a full-service kitchen, dining areas, outdoor patio spaces, a pool and a fitness center.”
Lien claims filed on 3 Hilton projects across Florida & Texas since October 2020
Since October of 2020, at least three additional Hiltons and hotels affiliated with the brand have resulted in construction disputes.
The three locations — two in Florida, one in Texas — resulted in construction disputes worth nearly $9 million in unpaid work.
Read more about those cases: