A lawsuit alleges a Mississippi general contractor underpaid and mistreated a minority-owned subcontractor in the construction of Montgomery Whitewater.
Montgomery Whitewater, set to open this summer, will have another use besides recreation - helping first responders with swift water rescue training. A company that performed electrical, concrete and mechanical work for Montgomery Whitewater, a rafting and kayaking park opening in July, has alleged that the general contractor treated minority-owned subcontractors inappropriately and did not pay them.
The lawsuit describes it as a quasi-public project that required at least 30 percent of subcontractors to be owned by women or minorities. MDG is a minority-owned business that was selected to perform work on the whitewater park. “JESCO then used self-inflicted cost overruns as a pretext to not pay MDG and reduced MBE’s scopes of work—invariably awarding the MBEs’ former work to JESCO to self-perform or send to those within its ‘good ol’ boy’ network, and at times performing the work with unlicensed subcontractors, including using a largely undocumented—and cheaper work force,” the lawsuit said.
The letter of agreement should have resolved the disputes between the companies and made the lawsuit unnecessary, according to attorneys for the district.
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