Dorm builder at SIU claims contractor owes money

Kelly Holleran Oct. 8, 2009, 11:14am

A company that helped to build dormitories at Southern Illinois University claims the contractor for which it worked owes it more than $100,000.

The complaint does not indicate which campus the construction took place.

Gateway Insulation Company filed a lawsuit Sept. 25 in St. Clair County Circuit Court against Hock Mechanical.

Gateway claims Hock Mechanical hired it as a subcontractor. For Gateway's work, Hock Mechanical agreed to pay it $89,680 for the original contract and $3,780 for extras for a total of $93,460.52, according to the complaint.

Throughout the construction, extras were added to the original subcontract between Hock Mechanical and Gateway, which ended up totaling $182,062.27 by the time the work was completed, the suit states.

"Plaintiff's estimated profit based on cost plus the industry standard of 20% overhead and profit is $36,412.45," the complaint says. "The approximate cost ($182,062.27) plus the profit (36,412.45) yields a total of $218,474.72."

However, Gateway claims Hock Mechanical only paid it $93,460.52 and still owes it $125,014.20.

Although it has requested the money it says it is due, Gateway says Hock Mechanical has failed to pay the money to it.

In addition to the money it says it is owed, Gateway is seeking pre-judgment interest at 5 percent per annum and other relief the court deems just.

Jay M. Huetsch of Adams and Huetsch in Waterloo will be representing it.

St. Clair County Circuit Court case number: 09-L-507.

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