Jeff Gallagher, owner of Gallagher Construction Group Inc., and Cory Yost, owner of Yost, Mooney & Pugh Contractors Inc., say they’re merging their commercial construction contracting companies to form Yost Gallagher LLC.

The merged company initially will be based at Yost, Mooney & Pugh’s 2,600-square-foot-office, at 28 S. Ray.

In coming months, the new company will move to larger quarters at 1803 E. Springfield, where it will have 5,900 square feet of office space and 5,000 square feet of warehouse space, he says, adding that the Ray Street property likely will become part of the North South Corridor right of way within the next three to five years.

Gallagher says he and Yost, who met through a mutual subcontractor, share core business beliefs.

Adds Yost, “Jeff and I have a philosophy of developing relationships with clients and working together to provide a seamless construction process and hopefully long-term relationships. We saw we were a good fit and decided to move forward and put it together.”

Gallagher says he and Yost decided the best way to join forces is to form a new company.

The Yost, Mooney & Pugh and Gallagher Construction names will be phased out as the companies complete their respective contracts.

Yost and Gallagher each own half of the new company, Gallagher says. Both principals grew up in the Spokane area.

Yost graduated from WSU in 1981 and started working the following year with the company then named Mooney & Pugh. He eventually became a principal and bought out the founders, Roger Mooney and Barry Pugh, who retired in 2005.

“Our company has changed a lot since I took over,” Yost says. 

Years ago, the company primarily had focused on public works, building 17 schools and landing contracts valued at more than $100 million at Fairchild Air Force Base.

Under Yost, the company now focuses on private-sector clients.

“I’ve transitioned to 80 to 90 percent negotiated contracts,” Yost says, adding that most contracts are with repeat clients.

Gallagher graduated from Central Washington University in 2001 and returned to the Spokane area in 2003.

In 2015, he founded Gallagher Construction, focusing on retail and office construction. 

Yost, Mooney & Pugh has 19 employees. Gallagher Construction has two employees in addition to Gallagher.

“My employees will merge, and as for Yost employees, we’re hoping it’s just a name change on the doors,” Gallagher says.