Edgewater must pay $14M for delays

Scolding Edgewater Hotel owner Bob Dunn for “micromanaging” the construction of Madison’s lakefront hotel, an arbitration panel ruled that the Edgewater Hotel and Hammes Co., the company that was hired to manage the hotel’s construction, did not manage the project effectively and must pay $13.8 million to J.H. Findorff & Son and $289,287 to Elkus/Manfredi Architects of Boston for delays and cost overruns.

Findorff was ordered to pay $1.4 million to electrical contractor Nickles Electric, and $3.1 million to J.F. Ahern Co., the mechanical contractor.

The Edgewater opened in fall 2014 despite some uncompleted projects.

Dunn hired Hammes to oversee the hotel’s construction, and according to a report at madison.com, only Dunn, president of Hammes Co., could approve any Edgewater-related costs above $10,000, a fact unknown to Findorff or others. Because he was also involved in other Hammes Co. projects at the time and frequently traveling, the panel suggested his absence led to significant Edgewater design and construction delays.

A spokeswoman for the hotel said they were disappointed in the ruling, but that hotel operations would not be affected.