State threatens legal action against vets home builder

Friday, June 8, 2001 | 11:29 a.m.

CARSON CITY -- The state Public Works Board Thursday gave the contractor at the troubled Veterans Home in Boulder City until June 30 to complete specified work or face legal action.

In addition to that list of corrections are several safety concerns that must be resolved before a planned opening in September.

Kirk Williams, a Las Vegas attorney who counsels the board, said there are hundreds of items the contractor, Addison Construction Co., has agreed to complete by the end of the month.

Williams, however, told the board there were some items that can't be completed by that date such as fire sprinklers, cracks in the walls and meeting ADA standards.

On the cracking, Williams said, "We're going to be in litigation." He also said the fire sprinklers "can't be resolved by June 30."

The home was scheduled to be completed a year ago. But it was extended to January. State Public Works Board Manager Dan O'Brien said Addison faces penalties for failing to finish the job.

Addison has filed $1.1 million in claims, saying it is owed the extra money because of changes ordered by the state after work began. Addison says it will file even more claims.

The original project called for 112,000 square feet and that was reduced to 88,000 square feet because of budget limitations. There are an estimated $1 million in cost overruns on the $20 million home to house 180 veterans.

Williams said the contractor was responsible for making sure the building complied with Americans with Disabilities Act standards on such things as ensuring the toilets were accessible to the disabled. "If they choose to bury their head in the sand, they are in for a tough legal issue," Williams said.

Vertical hairline cracks are showing up at the edges of the sheet rock in the building, O'Brien said.

Williams suggested that limited testing be done to determine the cause of the cracks. Addison is blaming the structural engineering company, Martin & Peltyn Inc., who in turn say the problems are due to faulty workmanship.

O'Brien said the walls could be fixed and blame could be decided in court. Williams said it may be five years before a legal battle is ended on who is responsible.

State Budget Director Perry Comeaux, chairman of the Public Works Board, suggested Addison be pulled off the job immediately and another contractor hired to complete the work.

But David Johnson, another special counsel to the board, said Addison is "boxed in a corner" by agreeing to complete certain jobs. "We needed to give them the opportunity to fail," he told the board. "We are making progress. We are riding herd."

O'Brien said he meets every Tuesday with attorneys for all involved in an effort to speed up the work and to resolve the outstanding issues.

O'Brien said a temporary certificate of occupancy would be issued in the next week to allow the administrative staff to move into the building. But patients won't be accepted until the safety issues are corrected.

The Legislature recently allocated more than $1 million to take care of things such as landscaping that were deleted when the original budget was exceeded.

O'Brien said the first five patients of the home might be able to move in by Sept. 1 into one section while work is completed in other areas.