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JE Dunn Construction Group and Emerick Construction Co. have signed a contract with the state to serve as the construction manager-general contractor for an estimated $250 million to $300 million project to upgrade and remodel the Oregon State Capitol building.

Contract agreements were reached Thursday night, Oregon Legislative Administrator Kevin Hayden said.

A variety of seismic, code, and safety and operational concerns have been identified at the building; according to a February report, in a major earthquake the capitol would be a collapse hazard. Asbestos has been found in the 75-year-old building, and lead exists in plumbing, ducting and paint.

Kansas City-based JE Dunn Construction, which has long had a presence in Oregon, and Happy Valley-based Emerick Construction, have the right qualifications to tackle the highly specialized design and construction project, Hayden said.

“Because of the nature of this project, we needed (firms) with historic experience, seismic experience and having done a project of this value before,” he said. “There were very few companies that had all of that.”

Plans include using base isolation techniques wherein a building is essentially lifted off of its foundation while giant rubber bumpers are installed to provide shock absorption during an earthquake.

Also, historic Capitol elements will be restored and preserved, Hayden said.

“This is the Oregon State Capitol,” he said. “This is the heart of government. It is a beautiful building that belongs to the people. We want to do everything possible to make sure it stays upright.”

The excavation work will require temporary relocation of state government officials and workers from the start of the project in 2015 until its anticipated completion in 2019, Hayden said.

Architectural firms were interviewed Friday, he said, and the state should have a notice to award a contract within five business days.

Representatives of Emerick Construction and JE Dunn Construction each declined comment.

Meanwhile, Portland-based Inici Group in November signed a contract to serve as owner’s representative, Hayden said. Inici will assist with relocation of state officials and workers, and provide legal counsel and financial accounting as well as other services, he said. The firm took part in interviewing the prospective CM-GCs and architectural firms.

“We needed to have a firm on board that could help us manage the project, accounting and various things that go into it,” Hayden said.

The state is using an integrated project delivery method by hiring a planning consultant and creating the team up front, he added. The architect will devise the plans, but the CM-GC, JE Dunn/Emerick, will be involved in the process. A guaranteed maximum bid for the project will be developed during the design phase over the next year and a half, he said.

“Investing a little more money up front will significantly reduce our change orders down the line,” Hayden said.

The project is being financed in stages. The Legislature has already approved $34.5 million for design, a phase that will last through 2014.

More money will come from bonding authority both in the 2013-15 biennium to complete the planning process and at the beginning of the 2015 legislative session for construction.