Contractors say Snohomish County Fire District 1owes them $500,000

EVERETT — Contractors building a new fire station for Snohomish County Fire District 1 say the district owes them about $500,000 for unanticipated extra work.

Jim Kenny, the chairman of the Fire District’s Board of Commissioners, disagrees and says it’s a dispute between the main contractor and the subcontractors.

Corstone Contractors of Snohomish is the main contractor building Fire Station 18 off Poplar Way in unincorporated Brier. Erin VerHoeven, a vice president of Corstone, last week told commissioners the district has delayed payments on excavation work completed late last fall. She accused the district of breach of contract.

“Their failure to timely address and make payment on these claims has resulted in the financial failure of several companies and the near collapse or many others,” she said.

Corstone filed a request with the commissioners to begin mediation.

Preparatory work on the new fire station site started last fall. Funding for the station came from a 2002 bond approved by voters.

The Fire District budgeted $4.7 million for the new station, Kenny said. Corstone was awarded the project as the low bidder.

Dump truck drivers who hauled dirt and mud from the site told commissioners all they want is to get their money.

“It’s hard,” said Tony Meranto, 23, of Granite Falls. “Companies are going out of business left and right. My house is going down in foreclosure.”

Meranto said he’s owed nearly $8,000.

Jason Everett, owner of Everett Construction of Sedro-Woolley, said his company’s owed about $250,000.

“Myself, I’m having difficulties trying to keep my guys employed,” he said.

If the general contractor doesn’t get paid, his company can’t pay its subcontractors.

“That puts the ball in everyone’s court that works on the job,” he said.

Kenny said there’s a legal process contractors need to follow and that last week is the first time a formal complaint came before commissioners.

“The district doesn’t hire any subcontractors,” he said. “We did a bidding process and Corstone was the lowest bidder. It’s responsible for hiring subcontractors.”

In a statement sent to The Herald, VerHoeven wrote that her company is challenging the district for “concealed conditions.” In an interview, she said the district failed to notify Corstone there was a large pool of water underground after a Seattle company tested the site prior to bids.

The result was that workers had to haul much wetter soil from the site than they expected, causing work delays and extra money, Everett said Friday. The sloppy dirt “was like clam chowder, like soup,” Everett said.

Oscar Halpert: 425-339-3429, ohalpert@heraldnet.com.

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