Vets’ home arbitration in final week

Tuesday, Feb. 21, 2006 | 12:35 p.m.

CARSON CITY - The state has spent more than $1.2 million fighting a legal battle over the construction of the veterans nursing home in Boulder City.

The contractor, Addison Inc., and four subcontractors say the state owes them $15 million because of errors made by the state.

The state disputes the claim, saying it is owed $1.8 million because mismanagement led to the project being a year past due and $1 million over budget when it was finished in 2002.

The case is now in its sixth and final week of binding arbitration.

Nevada's lead attorney, Kevin Senn of Senn Meulemans of San Francisco, characterized the Boulder City project as a "train wreck."

"Addison was the engine, and, unfortunately, the state was the caboose," Senn said.

Steve Foster, vice president of operations of Addison, says his company was "wrongfully terminated" and penalized for errors made by the architect.

Addison signed a contract with the state in May 1999 for $14.8 million to build the 188-bed nursing home for military veterans. Disagreements arose between the contractor and the state Public Works Board.

The board pulled Addison off the job after several delays. It was the first time the state has ever canceled an agreement with a contractor. It then hired Metcalf Construction of Carson City to complete the project.

Foster said the state ordered more than 500 changes in the design of the project. Addison was never paid for many of the change orders.

Foster said the architects are being blamed for the poor design, but the state fired Addison. He said the state was still correcting flaws in the design when Addison was removed from the job.

The state settled with the insurance company of architect Harry Campbell and Associates for problems with the design, receiving $500,000.

Senn said Addison was terminated because of mismanagement that led to the delays in the project.

Senn Meulemans is the same firm that is handling the state's investigation of a land deal between developer Bill Walters and Las Vegas. The company was hired last year by Attorney General George Chanos.

Former Attorney General Brian Sandoval hired the firm to handle the veterans home construction case.

Cy Ryan can be reached at (775) 687-5032 or at cy@lasvegassun.com.