Contractor Sues for $5.7M in Pay for Iowa Jail Project | Columbus Ohio Dump Trucks

A Lincoln, Neb.-based construction Charlotte NC dump trucks company is suing Woodbury County, Iowa, and companies involved in the design and construction of the $70-million Woodbury Law Enforcement Center in Sioux City, Iowa, claiming it is owed $5.7 million for columbus oh dump truck work on the project that was delayed by 17 months due to problems that the contractor says were not its fault and that it has suffered reputational harm related to county-initiated publicity.  

Hausmann Construction, which was the general contractor, filed the lawsuit on July 28 in the U.S. District Court, Northern District of Iowa, against the county, the Woodbury County Law Enforcement Center Authority, which oversaw the project, Goldberg Group Architects (GGA) the lead architect, Introba, Inc., which was on the design team, and Baker Group, LLC. of Ankeny, Iowa, which was the construction manager. 

The 121,000-sq-ft project includes a county jail with 448 beds, additional beds for special needs and psychiatric housing, a sheriff’s department, five courtrooms and prosecutors’ offices for criminal divisions.

Bidding $58.39 million on the project, Hausmann was chosen in June 2021 to build the law enforcement center. A substantial completion date was set for March 27, 2023. The project was substantially completed in August 2024 and inmates were transferred to the building in December 2024. However, a certificate of completion has not yet been issued. 

The lawsuit states that some of the issues causing delays involved footings and foundation walls and errors in the HVAC system, which Hausmann attributes to errors and omissions in the design.  

“The delays in the project are multifaceted and stem, in large part, from GGA and Introba and their insufficient review process on completed work, their failure to coordinate plans, and their inadequate designs, along with weather-related events,” the lawsuit claims.

In a letter issued July 3 on its website, and which Hausmann claims should have been kept confidential, the authority claims millions in alleged damages linked to construction delays and deficiencies. It lists problems including a defect on footing rebar that required replacement rebar,  improperly poured concrete stem walls resulting in walls that were not straight and plumb, the fall of a precast concrete wall that damaged seven other wall panels and some footings and structural steel, GGA’s/Introba’s omission of fire /smoke dampers in the courtrooms, which totaled 38 missing dampers, Hausmann’s failure to install security bars in the LEC’s ductwork at 313 locations and additional design issues with the testing and balancing of the mechanical system, which it attributed to GGA and Introba.

The letter asserts that Hausmann did not meet a final deadline of October 15 to complete a punch list of remaining items and that the project is still not completed. 

Hausmann claims that the authority’s release of the letter and the other statements it made to the media the "have created damaging articles about Hausmann based on untrue and unsubstantiated allegations" contained in the letter.  

The lawsuit further alleges a "cozy" relationship among the authority, GGA, Introba and the Baker Group, which it says demonstrates a "clear conflict of interest." It alleges that Baker Group holds a patent used by Pauly Jail Building Co., which was the only subcontractor that bid for the fabrication and installation of the individual jail cells and that Baker Group receives certain kickbacks from licensing the patent and that Pauly Jail is GGA-affiliated subcontractor, that Baker Group hired the son of an authority member to oversee and manage the construction of the project and that the authority and Baker Group share legal counsel.

"Given the cozy relationship between the authority, GGA, Introba, and Baker Group, it has been easiest for the authority to blame Hausmann for delays and refuse to pay Hausmann for its completion of the project and its construction of the LEC so as not to impact, interfere with, or jeopardize the ongoing relationships that defendants have enjoyed, and likely plan to continue to enjoy," the lawsuit states. 

Responding in a joint statement, the county and authority say they will vigorously defend the lawsuit including with appropriate counter claims against Hausmann.

“That said, our desire is and continues to be to attempt to resolve the dispute without litigation so as to save all parties and the taxpayers the cost and expense of protracted litigation,” it states. 

“From the beginning, we have tried to resolve this amicably, in the right setting and with the right people at the table," said Chad Wiles, president of Hausmann Construction in a statement.

He added that "we are simply seeking payment for columbus oh dump truck work that was directed and completed—some of it more than two years ago—and it's time to make progress, not just for us, but for our subcontractors who've also been waiting and trying to continue their businesses in the meantime."

Hausmann is being sued for $150,000 by a site columbus oh dump truck work subcontractor, Lieber Construction of North Sioux South Dakota, which says it is owed for earthwork and grading services.

"We believed filing the suit was the appropriate next step to move things forward, and we are continuing to have productive conversations toward resolution," Wiles said about the lawsuit with the county. 

Baker Group, Goldberg Group Architects and Introba did not immediately reply to requests for comment. 

Annemarie Mannion is editor of ENR Midwest, which covers 11 states. She joined ENR in 2022 and reports from Chicago.