Schaumburg finally settles contractor dispute

More than a year after Schaumburg's convention center and adjoining hotel opened, the village has settled a dispute with its general contractor that had kept $13.3 million in construction payments in limbo.

But at least one subcontractor remains skeptical that his withheld payment will be forthcoming.

David Weiner, president of Advance Mechanical Systems in Mount Prospect, said his firm is still owed more than $4 million for ventilation and plumbing work at the convention center.

"I'm skeptical," Weiner said of news of the settlement. "I'm hopefully optimistic, but skeptical."

But village officials said Thursday that once their signed settlement with Walsh Construction is ratified by a judge next month, the removal of liens and payment of subcontractors will be entirely a matter for Walsh to resolve.

Officials from Walsh did not return calls seeking comment this week.

The dispute went to arbitration after the village invoked a penalty clause in the Walsh contract for not completing the Renaissance Hotel in time to receive guests by July 1, 2006.

Subcontractors like Weiner, who played no part in the delay, felt caught in the middle of the flap between Schaumburg and Walsh.

While the convention center's first event -- a 10-day gymnastics tournament -- was able to go on as scheduled in July 2006, the athletes and their families were unable to stay at the adjoining hotel as they'd planned.

Although the settlement contains a non-disclosure clause regarding its details, Schaumburg Village Manager Ken Fritz said it pays out the entire outstanding amount and "resolves all issues" between the village and Walsh.

Weiner personally pleaded with Schaumburg's trustees last April to reach a quick settlement with Walsh. The money still owed him, he feared, could be frozen for years by a lengthy arbitration.

Village officials expressed sympathy for the subcontractors throughout the arbitration, but emphasized their contract was with Walsh. There was never a direct business relationship between the village and the subcontractors.

When asked if the village was likely to work with Walsh again, Fritz would only say the settlement also contains a non-disparagement clause.

Schaumburg Mayor Al Larson added there are many construction firms available for future work in the village.