The old, decrepit Ogg Hall has been gone for more than a year now, but a financial dispute over the early termination of a contract continues, with a decision expected Wednesday.
The Bay City, Mich.-based Dore and Associates contracting company was hired by the state in 2007 to tear down the old dormitory, but the group fired before completing the job due to a violation of safety requirements – the most serious being when a concrete block fell on a car.
Dore and Associates is now demanding the state pay $1.7 million in damages in order to compensate for the unpaid labor, hasty termination of the contract and additional expenses.
“We felt we had the job under control and that the contract was unfairly terminated,” said Arthur Dore, CEO of Dore and Associates.
The Wisconsin Department of Administration disagreed, stating Dore and Associates did not follow the safety and health procedures required by the contract.
Instead of demolishing the building properly by forcing debris to fall internally, the contractors allowed the wreckage to fall outside the building on the sidewalk and in the street, said David Helbach, administrator of the DOA’s Division of State Facilities and secretary of the State Building Commission.
Helbach said the safety of students and faculty who were walking and living in the area was in jeopardy due to these harmful practices.
He claimed the DOA gave the company ample warning of their possible termination if they did not alter their methods of demolition. After several notices were ignored, the DOA decided to terminate the company’s contract in March 2008.
The final straw was when a block fell on a worker’s vehicle, Helbach said. Dore and Associates was fired the next day.
“We very seldom fire contractors because it is an action we take very seriously, but Dore and Associates was fired under a good cause,” Helbach added.
The State Claims Board will decide Wednesday whether to stand by the DOA’s decision or to provide Dore and Associates with compensation.
If the Claims Board refuses to pay the company’s damages, and it is expected it will, Dore and Associates will consider filing a lawsuit against them, Dore said.
“The company doesn’t have a claim, so the state’s not going to pay,” Helbach said.
He added Dore and Associates actually owes the state $4,000 for delaying the demolition project. Since the DOA was forced to fire Dore and Associates and hire another contractor to finish the project, Dore and Associates must compensate the state for the time wasted.
If the State Claims Board votes in favor of granting the claim of $1.7 million to Dore and Associates, Helbach said a bill will be formed in the state Legislature in order to vote for payment. If the Legislature does not pass the bill, Dore and Associates will be eligible to seek legal recourse.
