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Developer and Housing Authority “Profoundly Dissatisfied” with Callahan, Denounce Contractor

by admin on October 27, 2016

The Chelmsford Housing Authority and Stratford Capital Group, partners in the Chelmsford Woods Residences affordable housing complex, have condemned Callahan, Inc.’s performance as a general contractor, stating that the significant problems encountered on Phase I of the development “could have been avoided with proper attention and oversight by Callahan.”

In a letter obtained through a Freedom Of Information Act (FOIA) request to the Chelmsford Housing Authority, Executive Director David Hedison concluded that he “cannot support contractors that engage in activities that may be fraudulent, negligent or inattentive to the laws at any level. In this instance, the business practices of Callahan, Inc. are completely unacceptable,” and insists that Stratford Capital Group does not hire Callahan for Phase II of the project.
Hedison referred to a series of “incidents” at the property, including a violent disturbance involving subcontractor J Kerrissey LLC (whose own violations are well documented) and noted “that Callahan, Inc. knew its subcontractor had an outstanding arrest warrant” (letter dated September 6, 2016). The letter also details the $91,000 OSHA violation against Force Corporation (a regular Callahan subcontractor) and an additional $1.3 million in unpaid OSHA fines and fees.

Richard Hayden, Executive Vice President of Stratford Capital Group, responded by acknowledging that the problems were Callahan’s responsibility, and wrote that “Stratford has been profoundly dissatisfied with Callahan’s performance and administration of the job for CWR [Chelmsford Woods Residences].” He agreed that Callahan was “not suitable” as a contractor for Phase II, and assured the Housing Authority that Stratford will not contract with Callahan.

As a result of this experience, Stratford Capital Group is implementing language in all of their contracts stating that no contractor with a violation during the past three years will be permitted to work on a Stratford project. Any contractors found to be violating this provision or misrepresenting its record will be terminated.

The complaints found within these letters indicate the severity of the problems with Callahan, Inc, and the network of subcontractors it relies on. Problems like these are endemic to Callalhan’s business model, and the list of communities and developers condemning the contractor continues to grow.

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