Veterans nursing home builder continues work despite deadline

Monday, July 16, 2001 | 10:57 a.m.

CARSON CITY -- A Las Vegas contractor hired to build the $19.3 million Veterans Nursing Home in Boulder City is continuing the job, despite a state ultimatum to complete the work two weeks ago or be terminated.

The state Public Works Board on June 7 gave Addison Construction Inc. until June 30 to finish the work or face legal action.

A meeting is scheduled Tuesday between public works board officials and Addison, said Senior Deputy Attorney General Brett Kandt, who represents the board. The state board meets Thursday in Carson City to decide what action to take.

The public works board could decide to remove Addison from the project and call in another contractor to finish the job.

In the meantime, Addison is working to complete the project, which is designed to care for 180 ailing veterans.

The project already has $1 million in cost overruns and was supposed to be completed Jan. 4. Fines of $2,885 a day have been accumulating against Addison since then, Kandt said.

Addison was the low bidder to build the project at $14.6 million. Company officials did not return phone calls.

The original project called for 112,000 square feet. Budget limitations cut that to 88,000 square feet.

State Budget Director Perry Comeaux, who is chairman of the board, said he understands Addison has made progress in correcting some of the major deficiencies. Dan O'Brien, general manager of the public works board, could not be reached for comment.

Kandt said progress has been "slow going." Some of the problems have been corrected, he said, but there has not been any progress on others.

Some issues still left to be corrected include the fire sprinkler system, cracks in the walls and features that will help the building meet standards set by the Americans with Disabilities Act, he said.

The board has hired attorney Kirk Williams as an independent legal counsel, and Williams has said the case will end up in court.

Addison has filed $1.1 million in claims, saying change orders by the state pushed up the cost of the project.

Addison also blames structural engineers Martin & Peltyn Inc. for many of the problems, citing poor design. Martin & Peltyn maintains the troubles were due to Addison's poor workmanship.

The 2001 Legislature allocated an additional $1 million to take care of such things as landscaping, which was scrapped when the project ran over budget.