County files suit over detention center billing

Thursday, Sept. 15, 2005 | 11:16 a.m.

The Clark County District Attorney is suing a Las Vegas construction firm to recover $10 million in taxpayer money lawyers say was fraudulently billed to the county for the delayed Clark County Detention Center expansion project.

The complaint accuses the contractor, AF Construction Company Inc., of presenting false claims to the county, county spokesman Erik Pappa said. County officials have also blamed the embattled contractor for a string of construction delays that have pushed back opening of the Regional Justice Center more than two years, although the county has not sued to recover damages from that project.

In the detention center suit, the county accuses AF of "knowingly presenting false claims to Clark County." The suit is seeking damages for false claims, false records and false statements used and made during the project, the county stated.

The suit also named AF's surety as well as contractors and subcontractors, the county stated.

Pappa would not say if the suit could be a precursor to any subsequent suit filed against the company for the justice center project.

Representatives for AF Construction, who have previously declined to discuss the company's disputes with the county, could not be reached for comment.

An arbitration hearing is scheduled for next month. In July, an independent panel of three arbitrators ruled that the county had enough evidence to sue the company to recover the money, Pappa said.

The detention center project consisted of a new, 379,000-square-foot, seven-story detention facility tower connected to the existing building with room for an additional 1,372 beds, nearly doubling the inmate capacity.

In November 1999 the county awarded the contract to AF Construction. The bid amount was $66.4 million. By the end of the project, AF billed the county more than $98 million and was paid $93.4 million.

The contract required AF to complete the project within 546 days -- May 27, 2001 -- but it wasn't finished until Oct. 13, 2003.

An investigation revealed that the company charged the county twice for the same work and created false records to obtain the payments, Pappa said.

According to the suit, the county's other allegations against the company include manipulating construction schedules, claiming delays that were not real, altering documents to conceal the false statements.

County commissioners in April voted unanimously to remove AF from the $185 million justice center project, saying the 17-story complex was beset by glitches including up to 38 separate leaks in the roof. Some departments expect to begin moving into the complex next month.

The county stopped paying AF for its work on the justice center in March 2003.