The project, scheduled for completion four months ago, is on the corner of State Street and Hawthorne Avenue NE in Salem. The Oregon Military Department has oversight over the project.

OMD fired McCarthy on July 19 and had police escort workers off the premises. McCarthy Building Cos. responded by filing a $4 million lawsuit against the state in Marion County Circuit Court.

The project is supposed to consolidate 120 emergency response personnel for forest fires, floods, domestic attacks and earthquakes. The state is withholding the final $1-million payment of McCarthy's $14.3-million contract pending the outcome of the lawsuit. A hearing is scheduled for the morning of Aug. 7, a court clerk tells GlobeSt.com.

The troubles began when OMD discovered that some of the smaller HVAC ducting and plumbing piping were not braced to provide extra protection against earthquakes. OMD sent a letter to McCarthy ordering the bracing be installed and that they eat the cost, saying it is required as part of the "general conditions of the contract."

McCarthy acknowledged receipt of the letter in writing, but said it does not consider the work part of the original contract and therefore would not perform the work until OMD signed off on the extra expense. In addition to claiming wrongful termination, the lawsuit claims that OMD "breached the contract and intentionally interfered … throughout the course of the project" and "constantly made the project atmosphere so acrimonious that (McCarthy) could not keep employees on the project."

Instant Insights /

McCarthy, State Head to Court Over Emergency Ops Center

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