NEW ORLEANS - Contractors hired to clean up after HurricaneKatrina are fuming over delays in getting paid by FEMA, and somepoliticians fear the red tape will discourage companies from biddingon the big rebuilding projects that lie ahead for New Orleans.
One company claims it is owed about $150 million, and somecontractors have walked off the job or gone to court to get the moneythey say they should have been paid for demolition and debris removalcompleted as much as a year and a half ago.
"You better hope another storm doesn't hit you. You guys will beunder water for six months," said Zach Johnson, a Kansas City, Mo.-area contractor who is suing for about $1.7 million for tree clearingin 2005. "Everybody got a bad taste in their mouth from Louisiana."
Johnson called the whole situation "messed up, frustrating,depressing" and said he will not pursue any more cleanup and recoveryjobs in Louisiana.
"Oh, hell, no. Nooo," he said. "I won't be back."
In some cases, cleanup contractors were hired by New Orleans-areaparishes on the understanding the Federal Emergency Management Agencywould cover most, if not all, the costs.
Contractors must submit their bills to the local governments thathired them. Then the bills have to be sent to the state for approval,after which they are forwarded to FEMA for review. FEMA isresponsible for releasing the money back down the chain.
FEMA said slow payments often stem from incomplete paperworksubmitted by the contractors and parishes. The agency said it istrying to protect the taxpayer by making sure the government is notoverpaying and that the work was performed as promised.
"We've done our part," spokesman Andrew Thomas said.
The agency said it could not immediately put a total value ondelayed payments in the New Orleans region.
In hard-hit St. Bernard Parish, local officials fear the slow-payreputation will discourage contractors from bidding on the next majorphase - the major reconstruction projects involving roads, sewers,schools, and police and fire stations.
The situation is so bad, officials said, that bidders are tough tofind for demolition and debris-removal work that remains nearly twoyears after the storm.
"It's slowing us down, limiting the amount of contractors thatwill bid and costing us more," said St. Bernard Parish CouncilmanJoey DiFatta. "This is effectively stopping the recovery."
Local officials said one big reason for the delays is that FEMAunderestimated cleanup costs. St. Bernard, for example, is appealingfour projects the FEMA valued at nearly $9.3 million, but the parishsays are worth $16.5 million.
"It's been a nightmare," said Amy Blanchard, finance director forSt. Bernard Parish.
The city of New Orleans let the Army Corps of Engineers handlecontracts for storm cleanup and deal with FEMA, and the Corps said ithas seen few disputes with contractors, but St. Bernard, Washingtonand St. Tammany parishes handled contracting themselves and are nowcaught up in red tape.
It is not unusual for federal contractors to have to wait a fewmonths for initial payments, but the delays here have been "veryexcessive, with no answer in sight for when they're going to getpaid," said Ken Naquin, chief executive of the Louisiana AssociatedGeneral Contractors.
Contractor Lawrence Green said he is owed about $150 million fordemolition and debris and sewage hauling in St. Bernard Parish. Atone time, he said, his crews stopped picking up debris. They laterresumed work.
"Our profits look great on paper, but you have to collect themoney," he said.
Cash-strapped St. Bernard and other parishes fear they could besaddled with millions of dollars in costs if FEMA does not pay.
St. Bernard remains largely in ruins and has only about half theannual $50 million budget it had before Katrina. Warped streets windthrough neighborhoods, and slabs sit where houses once stood. Wastemust be hauled out because the sewers have not been fixed.
FEMA has estimated it will cost $891 million to repair Katrina'sdamage in St. Bernard.
Omni Pinnacle LLC, a contractor for debris clearing in St. TammanyParish, is suing for more than $16 million it claims it is owed. St.Tammany also has been sued for more than $9 million by ShawEnvironmental & Infrastructure Inc., which was hired to monitor workdone by contractors.
The parish itself is suing, too, claiming FEMA has not approvedabout $3 million to clear clogged canals.
Slow pay, slow progress in Katrina cleanupNEW ORLEANS - Contractors hired to clean up after HurricaneKatrina are fuming over delays in getting paid by FEMA, and somepoliticians fear the red tape will discourage companies from biddingon the big rebuilding projects that lie ahead for New Orleans.
One company claims it is owed about $150 million, and somecontractors have walked off the job or gone to court to get the moneythey say they should have been paid for demolition and debris removalcompleted as much as a year and a half ago.
"You better hope another storm doesn't hit you. You guys will beunder water for six months," said Zach Johnson, a Kansas City, Mo.-area contractor who is suing for about $1.7 million for tree clearingin 2005. "Everybody got a bad taste in their mouth from Louisiana."
Johnson called the whole situation "messed up, frustrating,depressing" and said he will not pursue any more cleanup and recoveryjobs in Louisiana.
"Oh, hell, no. Nooo," he said. "I won't be back."
In some cases, cleanup contractors were hired by New Orleans-areaparishes on the understanding the Federal Emergency Management Agencywould cover most, if not all, the costs.
Contractors must submit their bills to the local governments thathired them. Then the bills have to be sent to the state for approval,after which they are forwarded to FEMA for review. FEMA isresponsible for releasing the money back down the chain.
FEMA said slow payments often stem from incomplete paperworksubmitted by the contractors and parishes. The agency said it istrying to protect the taxpayer by making sure the government is notoverpaying and that the work was performed as promised.
"We've done our part," spokesman Andrew Thomas said.
The agency said it could not immediately put a total value ondelayed payments in the New Orleans region.
In hard-hit St. Bernard Parish, local officials fear the slow-payreputation will discourage contractors from bidding on the next majorphase - the major reconstruction projects involving roads, sewers,schools, and police and fire stations.
The situation is so bad, officials said, that bidders are tough tofind for demolition and debris-removal work that remains nearly twoyears after the storm.
"It's slowing us down, limiting the amount of contractors thatwill bid and costing us more," said St. Bernard Parish CouncilmanJoey DiFatta. "This is effectively stopping the recovery."
Local officials said one big reason for the delays is that FEMAunderestimated cleanup costs. St. Bernard, for example, is appealingfour projects the FEMA valued at nearly $9.3 million, but the parishsays are worth $16.5 million.
"It's been a nightmare," said Amy Blanchard, finance director forSt. Bernard Parish.
The city of New Orleans let the Army Corps of Engineers handlecontracts for storm cleanup and deal with FEMA, and the Corps said ithas seen few disputes with contractors, but St. Bernard, Washingtonand St. Tammany parishes handled contracting themselves and are nowcaught up in red tape.
It is not unusual for federal contractors to have to wait a fewmonths for initial payments, but the delays here have been "veryexcessive, with no answer in sight for when they're going to getpaid," said Ken Naquin, chief executive of the Louisiana AssociatedGeneral Contractors.
Contractor Lawrence Green said he is owed about $150 million fordemolition and debris and sewage hauling in St. Bernard Parish. Atone time, he said, his crews stopped picking up debris. They laterresumed work.
"Our profits look great on paper, but you have to collect themoney," he said.
Cash-strapped St. Bernard and other parishes fear they could besaddled with millions of dollars in costs if FEMA does not pay.
St. Bernard remains largely in ruins and has only about half theannual $50 million budget it had before Katrina. Warped streets windthrough neighborhoods, and slabs sit where houses once stood. Wastemust be hauled out because the sewers have not been fixed.
FEMA has estimated it will cost $891 million to repair Katrina'sdamage in St. Bernard.
Omni Pinnacle LLC, a contractor for debris clearing in St. TammanyParish, is suing for more than $16 million it claims it is owed. St.Tammany also has been sued for more than $9 million by ShawEnvironmental & Infrastructure Inc., which was hired to monitor workdone by contractors.
The parish itself is suing, too, claiming FEMA has not approvedabout $3 million to clear clogged canals.
Slow pay, slow progress in Katrina cleanupNEW ORLEANS - Contractors hired to clean up after HurricaneKatrina are fuming over delays in getting paid by FEMA, and somepoliticians fear the red tape will discourage companies from biddingon the big rebuilding projects that lie ahead for New Orleans.
One company claims it is owed about $150 million, and somecontractors have walked off the job or gone to court to get the moneythey say they should have been paid for demolition and debris removalcompleted as much as a year and a half ago.
"You better hope another storm doesn't hit you. You guys will beunder water for six months," said Zach Johnson, a Kansas City, Mo.-area contractor who is suing for about $1.7 million for tree clearingin 2005. "Everybody got a bad taste in their mouth from Louisiana."
Johnson called the whole situation "messed up, frustrating,depressing" and said he will not pursue any more cleanup and recoveryjobs in Louisiana.
"Oh, hell, no. Nooo," he said. "I won't be back."
In some cases, cleanup contractors were hired by New Orleans-areaparishes on the understanding the Federal Emergency Management Agencywould cover most, if not all, the costs.
Contractors must submit their bills to the local governments thathired them. Then the bills have to be sent to the state for approval,after which they are forwarded to FEMA for review. FEMA isresponsible for releasing the money back down the chain.
FEMA said slow payments often stem from incomplete paperworksubmitted by the contractors and parishes. The agency said it istrying to protect the taxpayer by making sure the government is notoverpaying and that the work was performed as promised.
"We've done our part," spokesman Andrew Thomas said.
The agency said it could not immediately put a total value ondelayed payments in the New Orleans region.
In hard-hit St. Bernard Parish, local officials fear the slow-payreputation will discourage contractors from bidding on the next majorphase - the major reconstruction projects involving roads, sewers,schools, and police and fire stations.
The situation is so bad, officials said, that bidders are tough tofind for demolition and debris-removal work that remains nearly twoyears after the storm.
"It's slowing us down, limiting the amount of contractors thatwill bid and costing us more," said St. Bernard Parish CouncilmanJoey DiFatta. "This is effectively stopping the recovery."
Local officials said one big reason for the delays is that FEMAunderestimated cleanup costs. St. Bernard, for example, is appealingfour projects the FEMA valued at nearly $9.3 million, but the parishsays are worth $16.5 million.
"It's been a nightmare," said Amy Blanchard, finance director forSt. Bernard Parish.
The city of New Orleans let the Army Corps of Engineers handlecontracts for storm cleanup and deal with FEMA, and the Corps said ithas seen few disputes with contractors, but St. Bernard, Washingtonand St. Tammany parishes handled contracting themselves and are nowcaught up in red tape.
It is not unusual for federal contractors to have to wait a fewmonths for initial payments, but the delays here have been "veryexcessive, with no answer in sight for when they're going to getpaid," said Ken Naquin, chief executive of the Louisiana AssociatedGeneral Contractors.
Contractor Lawrence Green said he is owed about $150 million fordemolition and debris and sewage hauling in St. Bernard Parish. Atone time, he said, his crews stopped picking up debris. They laterresumed work.
"Our profits look great on paper, but you have to collect themoney," he said.
Cash-strapped St. Bernard and other parishes fear they could besaddled with millions of dollars in costs if FEMA does not pay.
St. Bernard remains largely in ruins and has only about half theannual $50 million budget it had before Katrina. Warped streets windthrough neighborhoods, and slabs sit where houses once stood. Wastemust be hauled out because the sewers have not been fixed.
FEMA has estimated it will cost $891 million to repair Katrina'sdamage in St. Bernard.
Omni Pinnacle LLC, a contractor for debris clearing in St. TammanyParish, is suing for more than $16 million it claims it is owed. St.Tammany also has been sued for more than $9 million by ShawEnvironmental & Infrastructure Inc., which was hired to monitor workdone by contractors.
The parish itself is suing, too, claiming FEMA has not approvedabout $3 million to clear clogged canals.
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