ANACORTES — The Anacortes School District has reached a financial settlement with a subcontractor on its high school construction project.
The school district will pay Colorado-based Sturgeon Electric $650,000 as compensation for what the company called a loss of revenue because of construction delays.
Sturgeon Electric filed what is called a request for equitable adjustment last year, seeking $3 million from the high school project’s general contractor, FORMA Construction and, by proxy, the district. In June, the parties entered mediation.
FORMA Construction will pay $1.1 million for a total settlement to Sturgeon Electric of $1.75 million.
The district announced the settlement Friday.
“Our district team successfully negotiated an agreement with FORMA and Sturgeon at the lowest net cost to the district,” Superintendent Justin Irish, who inherited the dispute when he took over the district in July, said in a news release. “In a project of this magnitude, these situations are sometimes inevitable, and I am proud of the work our team has done to come to a successful resolution.”
The district will use construction insurance to pay for some of the $650,000, and will seek financing to pay the rest, the release states.
The $93 million high school project — $87 million from a 2015 voter-approved bond and $6 million from state-match funds and donations — is considered complete, but because of the COVID-19 pandemic the district has not had a formal open house for the building.
That will be planned for when it is safe to have such an event, the news release states.