County Being Sued By Contractor

A contractor who worked on two botched Spokane Valley sewer projects is suing the county, claiming it messed up the job and failed to pay him for his work.

Mike M. Johnson of Kennewick is suing Spokane County for $1.6 million. Johnson’s company was the successful bidder last year for two sewer jobs in the Valley, one near 16th Avenue and Bowdish and another near Knox Avenue and Vista Road just south of Millwood.

In a Superior Court lawsuit filed Feb. 19, Johnson claims the county mishandled plans for both sewer projects, which delayed the work, costing his company money and time.

“There was extra work required, and a lot of things changed,” said Ben Price, contract administrator for Mike M. Johnson Inc.

Johnson claims the problems began when his company ran into substandard water lines during construction and was told to repair them. Then county engineers didn’t identify utility lines in the area, causing further delays.

Johnson said the county blamed him for the problems, then took the work out of his hands and gave it to another contractor without going through the proper bid process. All the while, the county delayed payments, forcing him out of business until the dispute can be resolved.

The Inland Northwest Associated General Contractors, a construction trade association in Spokane, has taken an interest in the case and plans to meet with county commissioners next week to discuss members’ beefs with the public works department.

“The Mike Johnson case is a microcosm of every construction problem faced throughout the county,” said Ken Dunham, the group’s executive director. “You could scratch out Mike Johnson’s name and write in any other’s.”

Dunham said contractors in Spokane County have to deal with bid processes being bypassed, poor communication and inconsistent plans. Contractors often have to pay overtime for county employees supervising the job.

“It is in nobody’s best interest to have this conflict and dispute going on,” Dunham said. “From the public’s perspective, it’s disruptive.”

Meanwhile, Johnson and the county are at a standstill after months of negotiations.

Johnson claims he was owed at least $800,000 to pay his suppliers and costs. The number increased to $1.6 million because of cost overruns and extra effort.

So far, the county has paid Johnson $1.5 million, company officials said. Johnson, the lowest bidder for the jobs, was awarded the Wolfland contract at $1.8 million and the Applevalley at $1.4 million.

The county said Johnson did not keep up his end of the bargain, and he even signed the papers to give a portion of his work to another contractor when it became clear he could not finish the job on time.

“We’ve got some serious concerns about the contractor performance on this job,” said Tim Durkin, senior deputy prosecuting attorney for the county. “There’s not a whole lot of merit to Mr. Johnson’s claims.”

Durkin said the county has been trying to reach an agreement with Johnson, but there was too big a disagreement on settlement costs.

“The county is not going to entertain discussions when Mr. Johnson is demanding $1.6 million,” he said. “He’s not even in the same state let alone the same reality.”