In 2015, we started our “News About Callahan” newsletter about the illegal and unethical practices in the construction industry’s underground economy. Callahan, Inc. is not the only general contractor that uses subcontractors that engage in these practices, but we have focused on Callahan because the firm has become one of the larger supporters of the underground economy.
We have cited instance after instance of wage theft on Callahan projects, and not one allegation has been refuted. Several of Callahan’s regular subs are under investigation by state and federal regulatory agencies. This business model, unfortunately, gives Callahan a competitive advantage over contractors that play by the rules, by artificially lowering its bids.
We will continue to shine a light on the regional underground economy in construction in 2016. We believe that a professional and responsible industry benefits all participants — from the carpenters in the field to the owners who select the general contractors and the architects who design the buildings.We wish all of you a Happy New Year and look forward to a more level playing field in 2016.