CHICAGO, Ill. – Payment disputes involving subcontractors that worked on the Obama Presidential Center have drawn renewed attention following the opening of the landmark campus, with several firms claiming they are still owed millions of dollars for completed work.
One black-owned business has escalated the claims and filed a lawsuit demanding payment.
The Obama Foundation, which oversees the project, says responsibility for hiring and paying subcontractors rests with the project’s construction manager, Lakeside Alliance, and that it has no outstanding financial dispute with the joint venture.
Subcontractors claim unpaid invoices
The issue first gained widespread attention after Crain’s Chicago Business reported that multiple subcontractors—including several minority-owned businesses—said they had not been fully paid for work performed during construction.
According to the report, contractors described a project plagued by delays, design changes and disputes over change orders. Several said those changes significantly increased costs while leaving smaller companies responsible for expenses they had not anticipated.
Omar Shareef, president of the African American Contractors Association, told Crain’s that several subcontractors had sought his assistance in recovering unpaid balances.
Shareef said approximately 10 subcontractors had contacted his organization, including both Black-owned and white-owned businesses. He estimated the value of disputed claims at roughly $100 million, although that figure includes a separate $40 million lawsuit filed by one subcontractor.
Obama Foundation says it is not responsible for subcontractor payments
The Obama Foundation disputes claims that it owes money directly to subcontractors.
In a statement provided to FactCheck.org, the foundation said Lakeside Alliance served as construction manager and had “primary responsibility” for hiring and managing subcontractors throughout the project.
The foundation also said it has “no outstanding disputed charges with Lakeside” and “no direct legal agreements or contracts with Lakeside’s subcontractors.”
According to the foundation, it worked with Lakeside Alliance to help some struggling subcontractors by supporting accelerated payments or prepayments when appropriate.
“We chose Lakeside Alliance as an experienced construction manager that was also committed to going above and beyond to help prepare its subcontractors to handle this project and mentor smaller firms who had never worked on a project of this scale,” the foundation said.
Legal disputes extend beyond payment claims
One of the largest legal actions connected to the project was filed by a Black-owned subcontractor seeking approximately $40 million in damages. The lawsuit alleges racial discrimination and disputes involving structural engineering work and project overruns.
Separately, construction of the presidential center faced years of litigation over its location in Chicago’s Jackson Park. Opponents challenged the city’s use of public parkland for the project, but those lawsuits were ultimately dismissed, and the U.S. Supreme Court declined to hear an appeal in 2021.
Project costs grew significantly
The Obama Presidential Center officially opened in June after years of construction.
The campus includes a museum, public library branch, athletic and community facilities, and public gathering spaces honoring the legacy of President Barack Obama and First Lady Michelle Obama.
Project costs increased substantially during construction. While early estimates placed the project between $300 million and $500 million, the Obama Foundation confirmed the final estimated cost reached approximately $850 million.
