New contractor sought to fix first-phase problems

After months of unreturned phone calls and subcontractors who went unpaid — and then stopped showing up to work — a new general contractor will be selected to fix unsatisfactory construction in the first phase of the H.E. Robinson Vocational Agriculture Center renovation and addition, according to Kalispell Public Schools.

The original general contractor hired to complete the first phase of construction, Missoula-based Outback Construction, reportedly “abandoned the contract,” according to a district email notifying bonding company CNA Surety of the situation. Outback was chosen as the general contractor in June 2018 on a $716,000 base bid to build a new veterinary science building, pole barn and greenhouse.

“Unfortunately toward the end of construction of phase one, Outback construction basically closed their doors,” Kalispell Superintendent Mark Flatau said, but several issues with the quality of workmanship remained unresolved. “We attempted to contact Outback and were getting nowhere.”

Problems arose in December, when the district reportedly started receiving calls from subcontractors who hadn’t been paid for a couple of months, according to Kalispell Public Schools Director of Finance Gwyn Andersen. The district then entered into a “joint check agreement” so it could pay subcontractors and suppliers directly, rather than the general contractor. The district paid subcontractors and suppliers from December through March until the money budgeted for the first phase dwindled, she said.

“We notified Outback we couldn’t continue to pay,” Andersen said, which prompted crews to stop showing up to work.

Since Outback was bonded, the district then reached out to CNA Surety in April.

CNA Surety is currently working with the district and members of the project team to select a new general contractor to finish the work and will take over payments of remaining work. A new general contractor is expected to be chosen this week.

Construction issues are primarily related to finishes, rather than structural. Architect and Engineering Project Manager Tom Coburn of Morrison Maierle provided a list of examples of problematic areas such as: “site grading issues that affect storm-water management, some concrete and manhole finish items on the site, finish work within the veterinary science building such as wall and ceiling drywall, some tile grout and cabinetry touch-ups, exterior metal siding and trim work on the veterinary science building and miscellaneous infrastructure items related to the greenhouse.

The first phase of construction at the vo-ag center was expected to be completed in the spring before things went awry. Classes, however, still occupied the veterinary science building during the school year when the second phase of construction got underway in May. The second phase is being completed by a different general contractor, Swank Enterprises, and encompasses a new north entry and south classroom and welding shop additions. The existing building is also being remodeled.

The school district is not alone in its experience with Outback.

Gallatin County is suing Outback Construction Inc. for breach of contract and fraud involving a $1.2 million storage facility construction project, according to court documents filed April 12 in Gallatin County District Court. The county is seeking $94,395 in damages. According to court documents, Outback reportedly failed to pay “at least nine subcontractors for services performed and materials provided,” but told the county it had paid subcontractors when it applied for final payment. An answer to the complaint was filed in District Court on May 24, denying most allegations and requesting the case be dismissed with prejudice.

The Daily Inter Lake attempted to contact Outback Construction for comment, but calls to phone numbers associated with Outback, or its president, Tanner Cochrell, would not go through.

The vo-ag construction project is still slated for completion in August 2020.

“It’s a slow process, but I’m confident it’s moving forward in the right direction,” Flatau said.

Flatau estimates the vo-ag center will be the final project finished that is part of a $28.8 million high school district bond, which also includes Linderman Education Center, slated to be finished in December, and Flathead High School, which has a dedication ceremony planned at 5 p.m. Aug. 27.

In another construction update, Erick Enz of Axiom Builders concluded his work as the district’s representative in managing Kalispell Public Schools’ elementary and high school construction projects in June. Flatau said he is confident district staff can take up that role as construction projects are close to completion.

Reporter Hilary Matheson may be reached at 758-4431 or hmatheson@dailyinterlake.com.