Frederiksen Court is finished, but has not been completely paid for.

Several subcontractors for the second phase of construction are suing DiCarlo Construction, the general contractor based out of Kansas City, as well as the Board of Regents over several different issues concerning Hawthorn Court Development Phase II.

“The Board of Regents is the legal owner of the campus facilities so the construction on campus is always done in the name of the Board of Regents,” said Greg Nichols, executive director of the Board of Regents.

As a legal matter, the owner is usually brought into suits regarding construction, he said. However, the primary action is against the contractor.

Dean McCormick, assistant director of construction service for Iowa State, agrees that DiCarlo is ultimately who the subcontractors are suing.

The use of subcontractors is a common practice, said Charles Jahren, associate professor of civil and construction engineering.

“Subcontractors are an important player in the industry,” he said.

Lawsuits between contractors and subcontractors aren’t uncommon, either. But with a government owner, such as the Board of Regents, things get “a little more dicey,” Jahren said.

In Iowa, as opposed to the rest of the nation, construction litigation is not seen as an answer to the problem, McCormick said.

Even then, “it’s an unfortunate part of the business in this day and age,” McCormick said. “Lawsuits are a part of our society today. It happens though all kinds of businesses.”

DiCarlo has not yet been paid in full, though the work for Phase II is completed.

“It’s a standard procedure to hold money back until all the issues are settled,” Nichols said.

Typically, 5 percent of the projected cost for the project is held back by the Regents, he said.

“Having that amount set aside helps resolves the issue quickly,” Nichols said.

Phase II was accepted and contractually completed by the university at the beginning of July, McCormick said. Now the cases should move a little more smoothly.

“It’s obviously in everybody’s best interest to settle before going to court,” McCormick said.

DiCarlo experienced some financial difficulties with other projects while working on the Phase II project, McCormick said.

DiCarlo missed some payments to subcontractors, he said.

This created an atmosphere of distrust, which drove people to the court system more quickly if there had not be financial trouble, McCormick said.

At least four suits have been filed by subcontractors concerning the Phase II project.

“A suit is allegations – always one side of the story,” McCormick said.

One of those suits has been brought by Peterson Contractors, Inc., of Reinbeck. According to court documents, PCI was subcontracted to prepare the site and move dirt for Phase II. PCI alleges there was extra dirt on the site, possibly from Phase I, that was not considered when PCI placed its bid. The extra dirt meant extra work for the company, as well as more money. PCI was paid for what it originally bid, but not for any extra work. PCI is suing for $99,431.

Documents serving DiCarlo’s side allege that they have no knowledge of any extra work. They argue that DiCarlo went ahead and removed any extra dirt on a “voluntary basis without authorization from DiCarlo.”

The case is still pending.

Another subcontractor suing the Regents and DiCarlo is TNT Framing of Overland Park, Kan. According to its suit, TNT was not paid in full for work “completed and accepted” in buildings 51, 52 and 53. TNT sued for $87,336.

DiCarlo filed papers alleging TNT broke its contract by failing to complete their work in a “timely and workmanlike manner” and therefore DiCarlo did not have to pay TNT. DiCarlo also argued TNT’s work was “defective in numerous respects.”

The case was settled June 25.

Foster Brother’s Construction Company of Mason City was subcontracted to pour the sidewalks. It, too, is suing for breach of contract for not being paid for all of its work. It is suing for the amount of $213,705.

DiCarlo’s argued that Foster Brother’s broke the contract first by not having the manpower to complete the sidewalks as scheduled.

The trial date is set for October, but because of scheduling, Michael Carroll, attorney for Foster Brother’s, has asked for continuance.

Don Elding, doing business as Grandma’s Tree Farm of Slater has also brought suit against DiCarlo’s.

He is asking for $163,663 for labor and plantings used for the landscaping around Phase II.

DiCarlo alleges in their court documents that Elding broke the contract by providing “defective” plants and not completing work on the defined schedule.

The case is still in the discovery stage and no trial date has been set, said Bradley Skinner, attorney for Grandma’s Tree Farm.

Elding also filed suit the Regents in a separate case. According to court documents, he sued for “unjust enrichment.” The Board of Regents are “enjoying the benefits of the work performed . without having properly paid,” he said in the document.

The suit against the Regents was dismissed May 20.

“The vast majority of cases of this type get resolved before going to court,” McCormick said. Most of the circumstances in the suits are “routine construction related problems,” McCormick said. “It’s a fairly minor dispute.”