A number of construction firms who have contracts with the city say they never get paid on time and that it's one excuse after another. Most companies are afraid to speak out because they fear they'll get shut out of future contracts, but one small business owner says he has nothing more to lose.
"I need to sell my tools to pay my bills," Yonkers contractor Stylianos Nikas said. "I'm behind in my bills."
Nikas is so strapped for cash he's literally selling off the tools of his trade, basics that built his small family business.
"I need to pay my bills and the City of New York is responsible," Nikas said. "I'm going to lose my business. I always, I always pay my bills on time. Now, I cannot."
Nikas' financial headache with New York City's Parks Department was highlighted by Eyewitness News last June (CLICK HERE to read the previous story). His firm, Tuckahoe Construction, had won a lucrative contract to refurbish two parks. One was Clove Lakes on Staten Island. The other was Owen Dolan in the Bronx. Nikas claims work came to a screeching halt because the Parks Department didn't have approved plans or permits. The day after the Eyewitness News story aired, Nikas says he got the go ahead from the Parks Department to start work again. It was a brief victory.
Nikas says that because of the city's bureaucratic red tape, what should have been a three-month job is now into its second year. Nikas, who owns the business with his wife, recently laid off seven employees due to mounting bills.
"We've done the right thing, and they're not," wife Anastasia Nikas said. "And now, because of Parks and Recreation, we're going to file for bankruptcy."
"I call for the last payment I put, they say, you know, sir, we lost your contract," Nikas said. "It's not in the system. You know, what I build all these years, I'm losing because of the city of New York, and no one cares, you know."
"They're killing a lot of companies," Anastasia said. "We're hearing every day from other contractors. They have the same problems. They're just killing us. They're just killing us."
The Parks Department blames the latest problem on an upgraded software system that authorizes payments to vendors.
"It's new," a department spokesperson said. "We've had some problems paying vendors. We're working to resolve the issue. The vendor who has been delayed in receiving his January payment will be paid with interest."
There is no word on when that payment will come or how many small business owners are in the same situation.
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