Skip to comments.Canadian company holding steel needed for WTC antenna 'hostage' for millions
Posted on 10/13/2012 4:44:51 AM PDT by SMGFan
A Canadian company is holding the steel needed to build the new World Trade Centers antenna hostage for millions of dollars jeopardizing the completion date for the tower and at least 100 iron-worker jobs, court papers charge.
The building reached 104 stories in August, but is expected to reach 1,776 feet when the antenna is done.
When it is complete, the building known as 1 World Trade Center will be the tallest building in the Western Hemisphere and a symbol of the recovery of New York City, New York state and the United States from the terrorist attacks of 9/11, the Manhattan Supreme Court suit says.
But, the Port Authoritys WTC Tower 1 LLC says in court papers that it cant happen unless ADF Steel stops trying to shake them down and ships the rest of the metal they desperately need to finish the project.
(Excerpt) Read more at nypost.com ...
There’s no steel available from US plants? Perhaps they are all running at 100% capacity in these boom years and just can’t take another order.
If they were in the hole to me for $6 mil, I wouldn't ship the dang thing, either!
Sort of like obama is holding the pipeline hostage?
Once this would not have been possible...and now we are a ‘service’ economy. What the hell is a ‘service’
economy? A sightseeing tourist attraction? Damn politicians and their union thug ignorance.
Me neither....this is the same company that has already been stiffed by the WTC builder for other projects on the same building. The builder is apparently trying to complete the building and get payments so that he can pay off bills he’s already reneged on.
The parts are unique and fabrication takes time. The Canadian company has to worry about its reputation as a reliable supplier and its sunken investment in the parts already fabricated, that cannot be used by anyone else. The Canadian company was undoubtedly the lowest qualified bidder, and it appears they have performed adequately to date. I see their reluctance to ship to a deadbeat customer without getting what they are already “owed”. The story says the PA admits that owes money on previous shipments, but the contracted stipulated that this shipment would not be held up disputes about other contracts.
This is what happens when Democrats run a region.
No steel here?
We need manufactured steel from Canada. Just wow.
It’s not just that US steel is more expensive [unions, taxes] but that US steel simply isn’t there?
So the Port Authority is Six Million in arrears on other related contracts and is paying in installments and has their fabricator pissed off?
This story is as old as the construction industry. Subcontractors and suppliers are the industry's bankers and get played for fools on a regular basis by the general contractors. Throw in the occasional sleazy owner (remember Charlie Keating???) and it's a regular murderer's row, at least in a financial sense.
The solution is simple....... pay the old bill.
The situation could become worse. They can demand payment for the steel in advance plus the old bill as well. I would.
Better pay up
Whining to a New York newspaper will only exacerbate the problem
GEE! I don't know WHY these folks won't just take his word for it that they'll get paid!
In the mid 60’s I worked at a gas station in the shadow of the Manhattan Bridge and would see all the steel, AMERICAN STEEL, coming across it on the way to the Trade Center.
Service economy my patooty!
The most important job of a CFO is to withhold payments to subs for the maximum time possible...preferably for at least a couple of bank cycles. I’ve worked for a couple of companies that did this on a regular basis.
This isn’t unusual, I also know of a batch of hydro-electric generators that are being held by the shipper for non-payment. How greeen is that?
That's where we all get rich shoveling each others' sidewalks!
If I told the Port Authority that I’ll pay their $14 tunnel toll or their $60 to park a car overnight at the airport when I get around to it, I wonder what would happen to me?
Which started first?
Posted my #14 before I read your post.
We think alike.
Around my area they’ve been replacing steel guard rails and installing sound barriers supported by large steel beams - I wonder where all that stimulus-funded steel is coming from.
Take your pick
Exactly what I said when I first heard this. America was once the steel maker of the world and now? Between government/EPA regs and union plant busting these important industries have left. Heaven forbid if we ever had to gear up for a major war; we'd be screwed!
No ticky no washy.
Greedy capitalists expect The Port Authority For The Peoples Republic Of New York too pay for their products?
They should be honored to have the contract and just provide the steel for free.
I searched for Pacsteel and all I could come up with was this;
isn’t that funny that the only quick referances I could find were here. Great pics BTW.
Sorry referances should be references.
Maybe one should pay ones bills?
It appears that ADF feels that once it delivers this last bit of steel that they will have no more leverage over the PA to make any more progress payments -- and they may be right.
I wish they would pay the bill. This is embarrassing.
I take it from the incendiary language the Post wants us to be outraged over this. Should we grab torches and mob the Canadian consulate?
they don’t pay the bills and yet they sue the company not willing to ship product until they are paid? Only in America.
The big difference is that Walmart would have had it built and opened a year or more ago...
Part of the CDS system was to determine whether to accept the suppliers discount in return for prompt payment based on the cost of borrowing money. Another part of the system overnighted the payment checks to a location with the post office with the longest mailing time before the supplier would receive them. The individual checks were drawn against the banks which had the longest clearing time. This was done to receive the longest ‘float’ on the money deposited in the banks.
The system relied upon a system by Phoenix-Hecht (PH)which studied both mailing time and clearing time for banks and post offices. By mailing out the checks on the date due, IH could legally claim that they were in full legal compliance with their contracts even though it may take a week or more for the supplier to actually receive the cash.
The PH system was intended to identify the post offices with the quickest mailing times and the banks with the quickest clearing times but IH used the system for the extreme opposite reasons.
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