Builder files suit against LVCVA

Friday, Oct. 18, 2002 | 11:01 a.m.

PCL Construction Services Inc., a Las Vegas general contractor that built the 1.3 million-square-foot Las Vegas Convention Center expansion, sued the Las Vegas Convention and Visitors Authority in Clark County District Court to recover $4.2 million in alleged unpaid work.

PCL, which offered a base bid of $97.4 million for a two-story building just south of Desert Inn Road and a $15.6 million "alternate" bid for a structure with meeting rooms bridging Desert Inn Road, said the LVCVA didn't adequately compensate PCL for change orders that added about $17.1 million to the project's costs and didn't adequately extend the project completion date.

The suit, which said the LVCVA last February ordered substantial additional work to be done in the kitchen area, food service area, concession areas and restaurant space, said the LVCVA issued a stop work order in February, refused to pay $4.2 million of the $17.1 million and terminated the contract on Sept. 10.

PCL also wants a court order preventing the LVCVA from enforcing a clause within the contract that requires the arbitration of disputes before the Nevada Arbitration Association because its panel of arbitrators allegedly has business, personal or professional ties with the LVCVA and its board of directors.

PCL, which said NAA rules aren't adequately designed to deal with complex construction issues raised in the lawsuit, said it wants a "reformation" of the contract to allow arbitration of disputes before alternative dispute resolution providers such as the American Arbitration Association or for the court to select a fair and impartial panel of arbitrators.

LVCVA declined comment on PCL's allegations.