Nov. 16, 2012
Some people never learn
Maranatha Construction, and its sister company Maranatha Drywall, have been assessed by L&I for more than $426,000 in unpaid workers’ comp premiums and penalties.
Maranatha Construction failed to report drywall square footage for a large construction project in King County, while taking advantage of discounted drywall rates. L&I audited Maranatha Construction 3 times previously, educating the firm extensively on specific drywall reporting requirements.
A fourth audit turned up significant underreported drywall square footage, along with failure to report covered workers and misclassification of worker hours. The firm received an assessment of $406,796, which they did not appeal.
Crown Drywall Estimating, operating in Washington as Maranatha Drywall, had been audited twice previously. L&I again audited Crown in conjunction with the SAIF Corporation (Oregon’s “state fund” workers comp insurer. Crown, owned by a relative of Maranatha Construction’s owner, failed to provide records for this audit.
L&I pursued a civil action against Crown, resulting in total audit premiums and penalties of more than $19,000. Prime contractor liability of $18,373 for unpaid premiums was issued to Maranatha Construction, Inc.
These firms have since stopped doing business in Washington and collection action is in progress. One prime contractor, Walsh Construction, was held liable for more than $82,000 of Maranatha’s premiums, and we received their payment November 1, 2012.