Falling Revenue Overshadows Most Commercial Contractors

by George Waldon  on Monday, Jun. 28, 2010 12:00 am  

He is accused of receiving construction funds on a Lowe's project that opened in October 2008 in Stafford, Va., but failing to fully pay several subcontractors for completed work.

A line of subcontractors has claims totaling about $1 million for unpaid work against May Construction.

Under Virginia law: "Funds paid to general contractor or subcontractor must be used to pay persons performing labor or furnishing material."

May allegedly had paperwork signed and presented to Lowe's to collect money for subcontractor work. Instead of paying the subcontractors, he allegedly retained the money to keep his financially challenged firm afloat.

May Construction last year ranked as the fifth-largest commercial contractor based in Arkansas, with 2008 revenue of $94 million.

MDH Builders closed its doors this year after battling since 2008 clients who wouldn't pay and subcontractors who failed to perform. Those financial setbacks, in turn, caused problems when the company couldn't stay current with its creditors.

"I'm just trying to lick my wounds," said Mike Hill, company president, who founded the venture 17 years ago.

MDH Builders last year ranked as the eighth-largest commercial contractor based in Arkansas, with 2008 revenue of $52 million.

In May, the former west Little Rock headquarters of MDH Builders sold for $1 million to a fledgling commercial contracting firm.

Clark Contractors LLC, led by William Clark, opened its doors for business in February 2009 after Clark resigned a month earlier as CEO of the firm his father co-founded in 1987 with Dillard's Inc.: CDI Contractors.

Clark Contractors generated 2009 revenue of $6.3 million, which fell below this year's list threshold.

Latco Inc. of Lincoln also declined to provide information for this year's list. The firm ranked No. 7 last year, with 2008 revenue of $60 million.

The absence of May Construction, MDH and Latco cleared the way for a string of firms to move up the list despite a tough year.

New to this year's list are two northwest Arkansas concerns: CR Crawford Construction, No. 12 at $25.8 million; and Milestone Construction Co. of Springdale, No. 20 at $11.5 million.

 

 

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