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Contractors hired to clean up after Hurricane Katrina are fuming over delays in getting paid by FEMA, and some fear the red tape will discourage companies from bidding on the big rebuilding projects that lie ahead for New Orleans. One company claims it is owed about $150 million, and some contractors have walked off the job or gone to court to get the money they say they should have been paid for demolition and debris removal completed as much as a year and a half ago. ?EUR??,,????'?????<????????You better hope another storm doesn?EUR??,,????'?????<????????????EUR??,,??t hit you. You guys will be under water for six months,?EUR??,,????'?????<???????? said Zach Johnson, a Kansas City, Mo.-area contractor who is suing for about $1.7 million for tree-clearing in 2005. ?EUR??,,????'?????<????????Everybody got a bad taste in their mouth from Louisiana.?EUR??,,????'?????<???????? Johnson called the whole situation ?EUR??,,????'?????<????????messed-up, frustrating, depressing?EUR??,,????'?????<???????? and said he will not pursue any more cleanup and recovery jobs in Louisiana. ?EUR??,,????'?????<????????I won?EUR??,,????'?????<????????????EUR??,,??t be back,?EUR??,,????'?????<???????? he said. Contractors must submit their bills to the local governments that hired them. Then the bills have to be sent to the state for approval, after which they are forwarded to FEMA for review. FEMA is responsible for releasing the money back down the chain. FEMA said slow payments often stem from incomplete paperwork submitted by the contractors and parishes. The agency said it is trying to protect the taxpayer by making sure that the government is not overpaying and that the work was performed as promised. In hard-hit St. Bernard Parish, local officials fear the slow-pay reputation will discourage contractors from bidding on the next major phase ?EUR??,,????'?????<??????????? the major reconstruction projects involving roads, sewers, schools, and police and fire stations. The situation is so bad, officials said, that bidders are tough to find for demolition and debris-removal work that remains nearly two years after the storm. ?EUR??,,????'?????<????????It?EUR??,,????'?????<????????????EUR??,,??s slowing us down, limiting the amount of contractors that will bid and costing us more,?EUR??,,????'?????<???????? said St. Bernard Parish Councilman Joey DiFatta. ?EUR??,,????'?????<????????This is effectively stopping the recovery.?EUR??,,????'?????<???????? ?EUR??,,????'?????<????????It?EUR??,,????'?????<????????????EUR??,,??s been a nightmare,?EUR??,,????'?????<???????? said Amy Blanchard, finance director for St. Bernard Parish. The parish itself is suing, too, claiming FEMA has also not approved about $3 million to clear clogged canals. Source: Associated Press
Contractors hired to clean up after Hurricane Katrina are fuming over delays in getting paid by FEMA, and some fear the red tape will discourage companies from bidding on the big rebuilding projects that lie ahead for New Orleans.
One company claims it is owed about $150 million, and some contractors have walked off the job or gone to court to get the money they say they should have been paid for demolition and debris removal completed as much as a year and a half ago.
?EUR??,,????'?????<????????You better hope another storm doesn?EUR??,,????'?????<????????????EUR??,,??t hit you. You guys will be under water for six months,?EUR??,,????'?????<???????? said Zach Johnson, a Kansas City, Mo.-area contractor who is suing for about $1.7 million for tree-clearing in 2005. ?EUR??,,????'?????<????????Everybody got a bad taste in their mouth from Louisiana.?EUR??,,????'?????<????????
Johnson called the whole situation ?EUR??,,????'?????<????????messed-up, frustrating, depressing?EUR??,,????'?????<???????? and said he will not pursue any more cleanup and recovery jobs in Louisiana. ?EUR??,,????'?????<????????I won?EUR??,,????'?????<????????????EUR??,,??t be back,?EUR??,,????'?????<???????? he said.
Contractors must submit their bills to the local governments that hired them. Then the bills have to be sent to the state for approval, after which they are forwarded to FEMA for review. FEMA is responsible for releasing the money back down the chain.
FEMA said slow payments often stem from incomplete paperwork submitted by the contractors and parishes. The agency said it is trying to protect the taxpayer by making sure that the government is not overpaying and that the work was performed as promised.
In hard-hit St. Bernard Parish, local officials fear the slow-pay reputation will discourage contractors from bidding on the next major phase ?EUR??,,????'?????<??????????? the major reconstruction projects involving roads, sewers, schools, and police and fire stations.
The situation is so bad, officials said, that bidders are tough to find for demolition and debris-removal work that remains nearly two years after the storm.
?EUR??,,????'?????<????????It?EUR??,,????'?????<????????????EUR??,,??s slowing us down, limiting the amount of contractors that will bid and costing us more,?EUR??,,????'?????<???????? said St. Bernard Parish Councilman Joey DiFatta. ?EUR??,,????'?????<????????This is effectively stopping the recovery.?EUR??,,????'?????<????????
?EUR??,,????'?????<????????It?EUR??,,????'?????<????????????EUR??,,??s been a nightmare,?EUR??,,????'?????<???????? said Amy Blanchard, finance director for St. Bernard Parish. The parish itself is suing, too, claiming FEMA has also not approved about $3 million to clear clogged canals. Source: Associated Press
Francisco Uviña, University of New Mexico
Hardscape Oasis in Litchfield Park
Ash Nochian, Ph.D. Landscape Architect
November 12th, 2025
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