Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SALEM, OR- A week after being fired as general contractor of the state’s uninhabitable $21-million emergency operations center, McCarthy Building Cos. responded last week by filing a $4 million lawsuit against the state in Marion County Circuit Court.

The state is withholding the final $1-million payment of McCarthy’s $17.33-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 project, scheduled for completion four months ago, is rising at then corner of State Street and Hawthorne Avenue NE. The Oregon Military Department has oversight over the project. McCarthy’s firing stems from an alleged lack of earthquake protection in the building.

Col. Mike Caldwell, the Military Department’s deputy director, did not immediately return a phone call seeking comment. Loren Collins, the state’s attorney on the case, also was unavailable. A spokesperson for St. Louis-based McCarthy declined comment but promised to fax GlobeSt.com a copy of the lawsuit, which did not arrive in time for this story.

The project is supposed to consolidate 120 emergency response personnel for forest fires, floods, domestic attacks and earthquakes. The primary problem is apparently the building’s seismic bracing. Specifically, the state is claiming that some pipes in the ceiling have not been adequately protected to withstand the heavy shaking that might occur during and earthquake.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


GlobeSt. NET LEASE Fall 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.