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The developer of the new Ae‘o condominium tower at Ward Village in Kakaako defended itself Wednesday against claims that it shortchanged contractors.
Howard Hughes Corp., which previously declined to comment on the litigation on the advice of its legal counsel, said project general contractor Layton Construction Co. “grossly overcharged” for work.
Texas-based Hughes Corp. also said it would defend itself against the “baseless” allegations and that condo owners should not be affected by the litigation.
“They (Layton) grossly overcharged us and did not abide by the terms of our agreement and we are going to hold them to the contract,” Simon Treacy, Hughes Corp.’s Hawaii president, said in a statement.
Layton filed a complaint in state court in December alleging that affiliates of Hughes Corp. failed to pay for $49 million of completed work on the 38-story tower in Kakaako with a total cost of $359 million. At least three subcontractors in the last two months filed their own claims against Layton and Hughes Corp. affiliates for
unpaid bills included in the $49 million sum.
Hughes Corp. said it is working to have subcontractors paid while handling the dispute with Layton.
“We are angry this is causing a massive payment delay to local subcontractors who have done a great job delivering on A‘eo,” Treacy said.
Treacy also said the rights of homeowners in the tower are not affected.
Ae‘o has 466 residential units that sold out for $1 million on average.
The contractors filed a mechanic’s lien applications in court, which asks a judge to decide what if anything
is owed. The liens, if approved, can serve as an ownership claim against the property.
