Obama Center Subcontractor Files $40 Million Discrimination Lawsuit Against Managing Firm
A subcontractor based in Chicago has filed a $40 million lawsuit against one of the companies overseeing the construction of the Obama Presidential Center, alleging racial discrimination forced the firm to take on additional work, pushing it toward financial ruin.
According to Fox News, Robert McGee, the owner of II in One—a company that has provided concrete and rebar services for the project since 2021—submitted the lawsuit in federal court last month. The suit is directed at Thornton Tomasetti, a New York-based firm responsible for structural engineering and design services for the $830 million project.
McGee contends that Thornton Tomasetti modified regulations and imposed new standards regarding rebar spacing and tolerance that strayed from American Concrete Institute guidelines. These changes, he asserts, resulted in "excessively rigorous and unnecessary inspection," causing substantial financial losses.
The lawsuit further claims that the extra documentation significantly hampered efficiency and led to multimillion-dollar setbacks.
Nearly a year ago, however, Thornton Tomasetti defended its actions. A memo related to the case stated that the subcontractors were "questionably qualified" and attributed project delays to their own shortcomings, according to Fox News.
The Obama Presidential Center, currently under construction near Jackson Park in Chicago, is expected to include a museum, library, and community and conference spaces. The facility will also serve as the headquarters for the nonprofit Obama Foundation, which oversees development and operates a scholarship program in partnership with the University of Chicago’s Harris School of Public Policy.
McGee alleges that Thornton Tomasetti wrongly accused II in One of lacking the necessary experience and qualifications while claiming that non-minority-owned firms were suitably qualified for the work.
He is seeking reimbursement of approximately $40 million in construction costs, which his firm and its joint venture partner, Concrete Collective, absorbed, according to Fox News.
"In a shocking and disheartening turn of events, the African American owner of a local construction company finds himself and his company on the brink of forced closure because of racial discrimination by the structural engineer," the lawsuit states. "II in One and its joint venture partners… was subjected to baseless criticisms and defamatory and discriminatory accusations by the Obama Foundation’s structural engineer, Thornton Tomasetti."
However, Thornton Tomasetti refuted these allegations in a February 2024 memo, maintaining that cost overruns and delays "were all unequivocally driven by the underperformance and inexperience" of II in One. The firm reportedly included images of cracked slabs and exposed rebar in the memo.
In its communication to the Obama Foundation leadership, Thornton Tomasetti stated it had spent hundreds of hours reviewing, analyzing, redesigning, and addressing necessary corrections. The firm asserted that contractors were responsible for "a multitude of problems in the field."
The firm further stated that concrete-related issues were solely due to contractor performance. "We cannot stand by while contractors attempt to blame their own shortcomings on the design team," the memo states.
Additionally, the memo claims that Thornton Tomasetti and an architectural firm "bent over backwards to assist what everyone knows was a questionably qualified subcontractor team in areas where more qualified subcontractor would not have required it."
Fox News also reported that the project has encountered various setbacks. Originally set to begin in 2018, construction was postponed until 2021 and is now projected to open in 2026.
Local activists have expressed concerns that the development could drive up housing costs and rent, potentially displacing long-term residents. Environmental groups have also criticized the project, arguing that it will result in excessive tree removal and negatively impact bird habitats.
Although activists threatened legal action to prevent the center’s construction, the project was ultimately approved shortly after a lawsuit was filed, as reported by Newsweek. In 2021, the Supreme Court declined to review the case.