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

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

The project is supposed to consolidate 120 emergency responsepersonnel for forest fires, floods, domestic attacks andearthquakes. The state is withholding the final $1-million paymentof McCarthy's $14.3-million contract pending the outcome of thelawsuit. A hearing is scheduled for the morning of Aug. 7, a courtclerk tells

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