Situation: Construction Management America (CMA) was hired by AKHI Hospitality, Inc. to be the General Contractor on the remodeling job of the Red Lion Hotel located at 4040 Quebec St. Denver, CO. Our company was hired by CMA to be the Electrical Contractor for the project. The bid amount was for $535,000. The project got off to a very rough beginning with permit problems and a variety of other difficulties.
The project was delayed several times. AKHI was very picky about knowing the costs of all items purchased for the project even though it was a bid job and they really were not entitled to this information. There were also numerous change orders requested during the project. CMA would tell us to do the work and then AKHI would refuse to pay for the changes. We also had problems with the pay applications being changed at the last minute.
This made for large accounting difficulties as they would not identify what money was being withheld and why. On the pay application it would show that we had been paid for items that we were never paid for. These problems existed from April through September of 2000. We passed all of the rough inspections that were completed through the time that CMA pulled off the job. We were on schedule in accordance with the last schedule we received.
In September everything came to a head. CMA was upset with AKHI for not paying for the changes. CMA then refused to pay the subcontractors for the last pay application. By doing this they had hoped to put pressure on AKHI to pay for the changes.
The result of this action was that AKHI fired CMA from the project. Our company was not paid for the majority of the work on the project. CMA had received payment for $30,000, which was to be paid to us from AKHI, but did not forward that money onto us.
We settled for $40,000 with AKHI due to a technicality in the way the lien was filed making it possible that we could have ended up paying for all of AKHI's attorney fees and also threatened to appeal any descion made by the courts and tie it up for years. We were on the verge of going out of business at this time and could not risk not receiving any payment.
In April 2002 we had a court date with CMA. They did not show up for court and the judge awarded us a judgment in the amount of $335,000. I have learned that they have changed their name and we are unable to pursue them through the courts. That is why we have come to the Rip-Off Report. It is our hope that: 1) change their minds and pays us what they owe, or 2) warn others who might choose to do business with them.
We were forced out of business due to this situation. Our reputation in the community was harmed due to our inability to pay our creditors making it virtually impossible to continue on in business in the Denver area. This will be a continuing saga, with entries added as the new information becomes available, or the situation changes. We want to get our money and request the assistance of anyone who can help. Please respond to this report.
Construction Management America
7127 E. Sahuaro, Ste. 203
Scottsdale, AZ 85254
Now known as:
Phoenix International, Inc.
Established January 2001
Incorporated 10/10/01 - Foreign Corporation
Officers took office 11/16/00
7127 E. Sahuaro Dr., Ste. 203
Scottsdale, AZ 85254
(480) 922-0265 Phone
(480) 315-0284 FAX
Significant Shareholders: Desert Skies Investment, L.P.
Owner: John Dunatov, President/CEO
Vice President: Dave Dunatov
SECRETARY: BRANKA DUNATOV
State License #B-098861, B-01-09884
AZ File #F-0971665-7
6100 NEIL RD #500
RENO, NV 89511
Statutory Agent: MORRIS A KAPLAN
GOLDMAN & KAPLAN LTD
2930 N 7TH ST
PHOENIX, AZ 85014
AKHI Hospitality, Inc.
65 Kerrigan Crescent
Canada L3R 7S8
Principal Shareholder: Abdul M. Lakhani
Hilton Hotels, Inc.
755 Crossover Ln.
Memphis, TN 38117
Project Director: Michael Hilton
(NOTE: I am not exactly sure what the relationship is between AKHI and Hilton hotels other then that Hilton Hotels paid for all the renovations to the Red Lion Hotel. I have copies of the checks paid to CMA)