Contractors Sue SMC Management for Unpaid Costs

Construction firms allege $5.5 million in owed payments for multiple housing projects across Worcester.

Updated on Oct. 30, 2026 in Construction

Bold flat-color editorial illustration showing a skeletal steel frame of an unfinished building, conveying a structural financial impasse. — Construction firms are suing SMC Management for $5.5 million in alleged unpaid costs, halting development at multiple housing projects in Worcester. AI Illustration. Upload story photo >

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Multiple contractors have filed lawsuits against SMC Management, claiming the firm owes $5.5 million for completed work on three separate construction projects in Worcester. Work has since ceased at a 185-unit housing complex located at 100 Washington St.

Why it matters

The legal action highlights a significant financial dispute stalling major local development projects. Contractors allege that loan funds intended for construction were instead directed toward investor payments and unrelated expenses.

Bozzuto Construction Co. leads the claims seeking $3.1 million, followed by Callahan Inc. with $1 million, McCarthy Concrete with $600,000, and Middlesex Glass with over $110,000. These debts stem from work on the 102-unit Residences on Madison and other sites.

The players

Bozzuto Construction Co.

This construction firm filed a lawsuit and a mechanic's lien against SMC Management regarding the Residences on Madison project.

SMC Management

This property management firm is the defendant in multiple lawsuits filed by contractors seeking payment for work on Worcester developments.

Callahan Inc.

This construction company is seeking over $1 million in alleged unpaid costs for work on a housing project on Hemans Street.

The details

Bozzuto Construction Co. has filed a mechanic's lien against the Madison Street property to recover funds. Allegations suggest that project financing was misappropriated, forcing the abandonment of the unfinished 210-unit development on Hemans Street.

2022: Table Talk Pies headquarters moved to Gardner Street.
August 2026: Bozzuto Construction Co. filed the first lawsuit against SMC.
2026: Residences on Madison opened with 102 units.

Market Landscape

This litigation signals a disruption in the rapid residential expansion of Worcester, which saw a surge of new units recently. The dispute highlights the financial instability currently affecting developers and their contractors within the regional construction sector.

The halt in construction at major sites may delay the availability of hundreds of new housing units in the local area. Residents should anticipate potential site inactivity and ongoing legal proceedings surrounding these residential developments.

The takeaway

These legal actions serve as a reminder for subcontractors to verify project funding structures before committing to large-scale developments. Property owners and developers often face complex financial scrutiny when construction projects stall due to alleged misappropriation.