Liens against Intel's Colorado Springs, Colo., Property Grow to $100 Million
Mar 10, 2002 (The Gazette Knight Ridder/Tribune Business News via COMTEX) More than $7 million in liens have been filed against Intel Corp.'s Colorado Springs property since January, boosting the total amount of liens filed to nearly $100 million.
Since Jan. 1, carpenters, electricians and other contractors that worked at Intel's Garden of the Gods Road semiconductor plant have filed 21 mechanic's liens against the property, according to records at the El Paso County Clerk and Recorder's Office. One lawsuit was filed as well.
That comes on top of more than 40 liens, claiming nearly $90 million, and several lawsuits that were filed last year.
Companies file liens when they have not been paid for work on a project or have a payment dispute. If the court finds a lien valid, it can enter a judgment against the property owner and could order the property sold.
Most contractors that filed liens refused to talk on the record, fearing it would hurt their chances of being paid. But some smaller firms have said they were forced to cut jobs because they haven't been paid for months. Springsbased SMI International Corp., for instance, had to cut several dozen workers and reduce salaries last year because of payment delays. The communications systems company filed a lawsuit in 2001 claiming $900,000.
Since early in 2000, several dozen contractors have filed about 60 liens, according to Gazette research. The liens add up to about onetenth of the project's $1 billion cost.
"Obviously we're extremely upset," said the president of one California contracting company that filed liens totaling more than $1 million. The owner asked not to be named. Last week, his firm received partial payment for work that ended more than six months ago. "You do a project like this and you expect to be paid."
The liens don't necessarily mean Intel has not ponied up money. Many contractors claim they have not been paid by the primary contractor DPR Construction Inc. or other subcontractors. But, ultimately, Intel is responsible for the liens. Intel spokeswoman Deanna Sauceda said the company is going through a process to resolve the disputes, although she couldn't say how long it will take or provide other details.
But she did say the process "is moving along in a positive fashion."
"We're concerned about the number and amounts of liens filed," she said. "We're trying to resolve disputes over payment . . . and that process may take time."
Intel, the world's largest maker of semiconductors, has settled roughly $27 million in liens against the Springs property.
Contractors must file liens within 120 days of submitting a bill. The slew of liens in the past two months comes as that deadline approaches for many contractors, Sauceda said.
Liens range from several thousand dollars to more than $18 million and have been filed by companies nationwide.
The liens are significantly higher in both number and amount than any other of the chipmaker's plants in the United States, and against other large construction projects in the Springs.
Construction industry insiders have speculated Intel may have attempted to go too fast, which led to miscommunication and cost overruns.
Intel began renovating the plant, which was built by another company but never used, in the spring of 2000. It opened most of the building and several support facilities a year ago, although construction continued through most of 2001.
Intel attempted to complete the project in record time to meet soaring demand for semiconductors. But the market for computer chips tanked halfway through the project, and Intel's initial opening date was pushed back by several months. |
