Venetian builder settles with subcontractors

Friday, Feb. 25, 2000 | 11:02 a.m.

The general contractor of the Venetian hotel-casino avoided disciplinary action by the state Thursday after settling with four subcontractors that had filed complaints with the Nevada State Contractors Board.

New York firm Lehrer McGovern Bovis Inc. faced penalties as harsh as suspension or revocation of its Nevada contractors license. Instead, the State Contractors Board ordered Bovis to pay $47,269, the full cost of the investigation against the contractor, and dismissed the complaints against the firm.

Bovis was under investigation to determine whether it had violated a state law requiring a general contractor to pay its subcontractors within 15 days of receiving payment from a property owner.

"The contractors were paid ... we feel (the investigation) was very successful," said Margi Grein, executive officer of the State Contractors Board.

Four contractors -- Century Steel, Steel Engineers Inc., Winaire Inc. and Maui One Excavating Inc. -- received full payment of their claims, estimated at more than $410,000, Grein said.

But it is not known what payment, if any, was received by Recreational Development Co., the largest claimant against Bovis in the investigation. In all, RDC claimed it was owed $866,788; however, Grein said RDC reached an agreement with Bovis prior to the hearing and withdrew its complaint. Neither company revealed the terms of this agreement to the board.

The board investigation represented the first shots in a contentious legal battle between the Venetian, Bovis and dozens of contractors over a project that ran far over budget.

The Venetian has sued Bovis for more than $50 million, claiming it failed to complete the construction of the Venetian on time and on budget. Bovis countersued for $146 million, the amount it said it is owed for cost overruns on the project.

In all, more than $300 million in liens have been filed against the Venetian by Bovis and other construction companies, which claim they have not been paid for supplies or work provided to the resort project.