Two Washington D.C. area small businesses are saying the got stiffed by Donald Trump and his company for work they did on his new Washington D.C. hotel. The contractors, whose employees performed plumbing, air conditioning and molding work on the Trump International Hotel, have filed liens against the Trump-owned hotel saying they have yet to be paid for their work.
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Two Small Businesses Say They Got Stiffed by Donald Trump for Work New D.C. Hotel
According to the Washington Post, “one firm, Joseph J. Magnolia Inc., is a private, family-owned plumbing firm with offices in Northeast D.C. and suburban Maryland that claims it is out $2.98 million. According to a mechanic’s lien the company filed four days before Christmas, Magnolia worked on the Trump hotel for more than two years, from September of 2014 to December of 2016.”
The Washington Post report went on to say:
Magnolia “completed all plumbing, mechanical and HVAC work, along with site sewer, water, storm and water services” on the project, according to its filing with the D.C. government. The company said it provided labor and materials for the work and named Trump’s D.C. hotel company, Trump Old Post Office LLC, and construction manager Lendlease US among the responsible parties.
John D. Magnolia, the company’s president, said in an interview that the Trump family had paid for most of his work on the project and that he voted for Trump in November. But when the final money did not arrive and criticism grew over the president-elect’s continued ownership of the project as he prepares to enter office, Magnolia said he worried ownership would change before the Trumps paid fully.
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Not the first time Trump hasn’t paid his bills
The allegations by two small businesses are part of a long history Donald Trump and his companies seem to have of intentionally not paying their vendors for work that has been completed. In fact, based on the various stories from Trump vendors and quotes from Donald Trump himself, the behavior seems to be part of a business tactic. Pressure your vendors to get the work done fast and ahead of schedule then claim afterward that the work was sub par and try to negotiate a lower payment.
In fact, he told the Wall Street Journal as much, “I love to hold back and negotiate when people don’t do good work,” Trump said.
The Washington Post report also confirms Trump’s history of not paying his bills saying, “Trump has a long record of not paying or only partially paying some of the contractors and partners on his projects. Hundreds of small business owners and blue collar workers including painters, dishwashers, waiters, bathroom installers, chandelier sellers, curtain makers and lawyers have in the past accused Trump’s businesses of leaving them with unpaid bills at times.”
The Washington Post goes on to say that the mechanic’s liens could also affect the lease deal that Trump has with the federal government. “A clause in the lease requires that Trump Old Post Office LLC notify the GSA in writing within 10 days of any mechanic’s lien being filed. Within 30 days of the filing, Trump’s firm is required to have any liens “discharged” unless it contests the claims being made. Spokespersons for the GSA did not immediately respond to requests for comment.”
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