Nearly all subcontractors who claimed they were owed money by a Keene construction company have been paid or will be paid, months after complaints first surfaced.

Earlier this year, a number of subcontractors came forward saying they had not been paid by Baybutt Construction Corp. for projects they had worked on, including the $5.9 million Keene fire station, the $2.9 million renovation project at the Rockingham Free Public Library in Bellows Falls and the $2.6 million renovation project for the Vermont state office building in Brattleboro.

Thirty-five of 40 subcontractors on the Keene fire station have been paid through the insurance company, Merchants Bonding Company of Iowa, for a total of $789,000, according to the company. The other five will be paid soon, the company said.

In Brattleboro, work on the Vermont state office building resumed on April 1, said project manager Lauren Washburn. The project halted for about two months, as subcontractors walked off the job site because they claimed they had not been paid.

Washburn did not have exact numbers on how many or how much subcontractors were paid through the insurance company, but said a handful received money and the others will soon. The project included renovations to the inside and outside of the 35-year-old building, including installing new air and heating systems. Construction should be completed by July, Washburn said.

In Rockingham, subcontractors working on the library project did not receive money from an insurance company because Baybutt Construction never took out an insurance bond, though town officials say they gave the company $21,000 to do so.

Baybutt owed subcontractors about $750,000, said Rockingham town attorney Stephen Ankuda.

At a personal bankruptcy hearing in March, Baybutt Construction President Frederick L. Baybutt said the library’s board of trustees waived the bond to save money. But when reached after the hearing, Janice Mitchell-Love, chairwoman of the library’s board of trustees, said the board never waived the bond.

Town and library officials agreed to scale back the library project about $320,000 to pay the subcontractors for the work they did, Ankuda said. Also, he said, money that was to go to Baybutt Construction will go to the subcontractors.

Officials agreed the library would not have things such as bronze stair nosings, ceramic tiles and rubber flooring. About seven of the dozen subcontractors owed money have been paid so far, with the others to receive payments soon, Ankuda said.

Town and library officials hired Engelberth Construction, which has an office in Keene, to finish the project.

Mike Halliday, president of Hancock-based Halliday Pipeline, received $130,000 that Baybutt Construction owed his company for work done on the Keene fire station. Halliday said he received the full payment from the insurance company about three weeks ago.

Halliday Pipelines did excavation and sidewalk work for the fire station, finishing early in the fall. In January, Halliday said his company was behind in bills because it did not receive any payments from Baybutt. Now, with the money from the insurance company, the company is back on track, he said.

“It finally came through,” he said. “It’s all over for us now.”

Frederick Baybutt filed for personal bankruptcy in February. At the bankruptcy hearing in March, he said the company is sidelined — not currently doing business, but not shut down. The company is broke, and its only assets are a handful of construction equipment, including forklifts, trucks and trailers, Baybutt said.

Baybutt also said at the bankruptcy hearing the company’s financial problems started last year when it worked on the $13 million Brattleboro Food Co-op. Baybutt said food co-op officials were late in paying his company, although food co-op officials disagreed.

Baybutt Construction Corp., a family-run business, has been working in New England since 1964.

Jacqueline Palochko can be reached at 352-1234,

extension 1409, or jpalochko@keenesentinel.com. Follow her on Twitter @JPalochkoKS.