Builder Pulls Out Over Pay at Airport

The subcontracting firm that is building the new upper-level roadway for John Wayne Airport’s new passenger terminal pulled its 60-person work force off the job Thursday in a pay dispute with the general contractor, airport officials said.

The subcontractor, Kettering-Kruseman of Artesia, told employees not to come to work today and said the firm would “wait and see” about renewing work next week, according to an employee who declined to identify himself to a reporter.

Company and airport officials confirmed the employee’s account but said they could provide no details. Earlier this year, another subcontractor briefly walked off the job until the general contractor, Taylor Woodrow California Construction Ltd., paid subcontractors out of corporate funds instead of waiting for money from the county, which owns the airport.

Payments have been 30 to 90 days behind schedule at times due to disputes over change orders and documentation requested by the county to support contractor and subcontractors’ billings.

Taylor Woodrow officials were unavailable for comment.

Kettering & Kruseman attorney James McGee of Irvine said the dispute is over Taylor Woodrow’s failure to pay $1.3 million to the subcontractor’s. “They missed the payroll payment on May 15. They missed the payroll payment on May 30.” Under their contract, Taylor Woodrow agreed that Kettering & Kruseman could withdraw workers if payments are more than five days late, McGee said, adding:

“Kettering & Kruseman is concerned that Taylor Woodrow does not have sufficient money to make the payment. So this is a major problem.”

McGee noted that there has been “a lot of speculation that Taylor Woodrow bid the project too low and therefore at some point toward the end of the job, there just would not be sufficient money coming from the county to pay the subcontractors.”