Vegas Stadium Subcontractor Sues Over Payment

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The Las Vegas Stadium, which will one day host the NFL’s Raiders franchise, is currently under construction. One of the stadium’s subcontractors is reportedly looking for their piece of the $1.8 billion in construction costs — and is seeking what it says it is owed in a lawsuit that names the Oakland Raiders, Las Vegas Stadium Events Co., the Las Vegas Stadium Authority, Mortenson-McCarthy, Merrill Iron & Steel and others.

The Las Vegas Review-Journal reports that Florida-based ADP International claims in its suit that it is owed $2.8 million for work the firm did on the stadium. However, some of the entities named in the suit say that the dispute is between ADP and Wisconsin-based Merrill Steel, and doesn’t really concern them. 

“This is a lawsuit concerning a dispute over payments claimed to be owed by a second-tier subcontractor to a third-tier subcontractor,” Don Webb, the COO of the stadium company, told the Review-Journal. “It does not involve any claims concerning payments made or owed by the Raiders, StadCo or the Stadium Authority.”

The Review-Journal reports that the suit alleges Merrill breached its contract with ADP by failing to provide payment in a timely manner. The work for which ADP is seeking payment has reportedly been completed, so the suit shouldn’t affect construction progress.

Though the suit names some high-profile entities, Webb pointed out that those organizations — the Raiders, the Stadium Company and the Stadium Authority — are indemnified from such disputes by contract. 

Still, the Stadium Authority’s Jeremy Aguero told the Review-Journal that he wasn’t surprised to be included in the suit. 

“The public owns the project and the Stadium Authority is on the front end of that, so that doesn’t surprise me. In terms of putting public funds at risk, it seems to be an issue between Merrill and one of the subcontractors so I don’t have a concern about that,” he said.

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