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Redwood City is named as a defendant in three lawsuits, with subcontractors seeking a combined nearly $9 million in allegedly unpaid bills over the Veterans Memorial Senior Center’s delayed $56 million project.
Subcontractors handling plumbing, electrical work and construction filed three separate lawsuits against the City of Redwood City; the city’s contractor, Thompson Builders Corporation; and the contractor’s bond surety companies.
“The city has no comment on payment disputes between Thompson and its retained subcontractors on the project,” Redwood City communications consultant Jeanne Sullivan Billeci said.
“Thompson Builders and many of our subcontractors are seeking from the city the costs for the delays and extended duration of the project due to [design] changes,” Paul Thompson, the president of Thompson Builders, said. “Both parties are working with a mediator to facilitate a resolution to the dispute and subcontractor actions.”
Thompson said the senior center project was a “difficult and delayed project” that involved more than 1,000 requests for design clarifications and more than a year of delays.
The three subcontractors, McMillan Electric, Inc., T3, Inc. and Dinelli Plumbing Incorporated, each alleged in their complaints that project delays were beyond their control. None of these companies responded to the Pulse’s requests for comment before publication.
The Veterans Memorial Senior Center at 1333 Madison Ave. celebrated its grand reopening in May. The project was intended to expand recreation, wellness programs, senior services, community events and veteran recognition in Redwood City.
The new building features a 279-seat auditorium, multipurpose rooms, wellness and fitness areas, a commercial kitchen for the city’s senior lunch program, a gym with half of a basketball court and space for indoor pickleball and volleyball.
Multimedia exhibits commemorating veterans, Redwood City’s NFL Alumni Association, and the San Francisco 49ers, who trained at the facility from 1966 to 1988, are also displayed at the center, according to Tanisha Werner, the city’s director of engineering and transportation.
McMillan Electric filed its complaint in May 2025 alleging Thompson Builders, Redwood City and Markel Insurance Company willfully failed to pay the electrical company $6 million for its labor and materials.
T3, a demolition and hazardous material abatement contractor, filed a separate lawsuit against the same three defendants nearly a year later, on May 12. In its complaint, T3 alleged the defendants owe almost $320,000, plus 10% interest per year, for the subcontractor’s ceiling work.
Dinelli Plumbing filed a complaint about a month later, on June 15, against Redwood City, Thompson Builders, Markel Insurance Company and Suretec Insurance Company. Dinelli alleged it’s owed more than $2.5 million, plus 10% annual interest.
Thompson Builders responded to McMillan’s complaint on May 28, T3’s on July 30 and Dinelli’s on Aug. 10 with identical language asserting that the damages were “the result of acts or omissions… of other parties… for which defendants bear no responsibility.”
Thompson Builders filed a cross-complaint on May 28 against McMillan Electric and on Aug. 10 against Dinelli Plumbing, alleging that the companies failed to follow the project schedule and did not exercise due care.
The Redwood City Council unanimously approved almost $190,000 to extend services with Gilbane Building Company, which managed construction, and $29,000 to extend services with ELS Architecture and Urban Design, on Monday. The extensions were needed “due to delays in remaining punch list and close out activities” for the senior center, according to the council’s Oct. 5 staff report.
Under the city’s Project Extension Agreement with Thompson Builders, the contractor “is responsible for the city’s consultant and project management expenses after Feb. 28, 2025,” the staff report noted.
Case management conferences are scheduled for Nov. 4 in the McMillan Electric case Nov. 30 in the T3 case, and Dec. 28 for the Dinelli Plumbing case, all at 9 a.m.
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