LV subcontractors told to get vocal

Phil Levine

Monday, Feb. 28, 2000 | 10:47 a.m.

Southern Nevada subcontractors must unite and speak in a resonant voice if they hope to raise awareness of their issues, a local industry leader said.

With a recurring message reminiscent of an organized labor rally, the Nevada Subcontractors Association Inc. held its first meeting of the new millennium Friday at the offices of Reliable Steel Inc. in North Las Vegas.

"For many of us (subcontractors), construction just isn't as much as fun as it used to be," said Tim Puetz, Reliable president and an NSCA Director. "These days, you also have to be a lawyer, an accountant and even a babysitter to get the job done."

Puetz told an audience of about four dozen local subcontractors that as a result of increased regulations, "many good people are leaving the business."

"I guess you could say I'm a dying breed, a good ol' boy who just pays his bills on time," said Puetz. "I don't think of myself as a businessman, and neither do many other subcontractors. The answer is to get more people to join our group, and get our message out loud and clear."

Subcontractors' issues rose to the forefront last year in the wake of claims by several construction companies that they were unpaid for work done on the Venetian hotel-casino.

In all, more than $300 million in liens were filed against the Venetian by the hotel's general contractor, New York-based Lehrer McGovern Bovis Inc., and a multitude of other subcontractors.

Last week, Bovis avoided disciplinary action by state regulators after settling with four subcontractors that had filed complaints with the Nevada State Contractors Board.

At the NSCA meeting, Puetz identified several growing concerns for area subcontractors, including slow payment for work done, increased litigation and the availability of bonding.

Although many subcontractors already belong to other organizations -- including specialty trade associations and general contractor groups -- Puetz said no one currently is speaking out on behalf of "the everyday subcontractor."

The NSCA has about a dozen members.

"The general contractor is really the middle man," he said. "We're the ones who do most of the hiring in this business."

Puetz said for many local subcontractors -- including himself -- the Venetian experience is just the latest in a long line of similar events.

"I did work on the Stratosphere (hotel-casino), and when they went bankrupt I was left holding the bag for everyone who'd worked for me on that project," he said.

North Las Vegas Mayor Michael Montandon echoed the need to increase political and public awareness of subcontractor issues.

"Our city does $100 million in construction work each year," Montandon said. "And I can tell you that there's force in numbers."

Montandon said that in addition to his role as mayor, he also "has a real job" indirectly involved in the construction sector.

As an executive with construction control services firm Nevada Construction Services of Las Vegas, Montandon said he regularly deals with subcontractors and empathizes with their concerns.

(Construction control companies are often used as middle men to disperse payments to subcontractors on construction projects.)

"We hand out checks (to subcontractors) on Fridays, so if many of you weren't here you'd likely be in the front of my office," Montandon said with a smile.

"My advice to you is really to promote discussions on the key issues of importance to your industry, and I think you'll find subcontractors will then be attracted to your organization."

On a more serious note, the North Las Vegas mayor said his city is on the verge of an enormous construction boom.

"While it's true Henderson owned the 1990s, we (North Las Vegas) will own the (first decade of this century)," he said. "As you know, we're negotiating with the BLM (Bureau of Land Management) for a 7,500-acre parcel of land. It took a long time for this to happen, but I believe the timing is now right.

"Market forces are coming together in a beautiful way here, and my job as mayor is basically to just stay out of the way and not screw things up."