Company sues to get paid for work at Raiders Stadium

Getty Images

A lawsuit for $2.8 million sounds like a big deal. It sounds like less of a big deal when it’s part of a $1.8 billion stadium project.

Via Mick Akers of the Las Vegas Review-Journal, ADP International has named multiple entities in a lawsuit for alleged non-payment, including the Raiders, the Las Vegas Stadium Events Co., the Las Vegas Stadium Authority, general contractor Mortenson-McCarthy, Merrill Iron & Steel, and others.

Don Webb, the COO of the Raiders-owned entity that is building the stadium, said the dispute is between Merrill Iron & Steel and ADP only.

“This is a lawsuit concerning a dispute over payments claimed to be owed by a second-tier subcontractor to third-tier supplier,” Webb told Akers. “It does not involve any claims concerning payments made or owed by the Raiders, [the Stadium Events Company] or the Stadium Authority.”

Webb also explained that the various contracts require the general contractor and all subcontractors to fully indemnify the Raiders, the Stadium Events Company, and the Stadium Authority. Thus, any claims against the contractor and subcontractors will be covered by those companies.

So, basically, this looks like a non-issue for the Raiders and those who will be running the stadium. But it’s definitely an issue for Merrill Iron & Steel, as evidenced by the fact that the company’s president abruptly hung up the phone on Akers when Akers called for comment.

7 responses to “Company sues to get paid for work at Raiders Stadium

  1. Despite the fact that the Raiders have a legal loophole so they can avoid responsibility for their shady contractors, the fact remains that their general contractor has hired a shady sub-contractor. It’s not a good look, however you slice it, and saying, “not my problem,” is even uglier. People who do work, deserve to be paid. Period. The Raiders are at the top of this particular food chain and need to make it happen; threaten to fire the contractor unless they fix this.

  2. Honestly, this sounds like a fixed bid up and a Time &Materials down. A lot of contractor shops do this, it normally works to their benefit. Looks like they mis-estimated. This is not news, this is normal business crap. It happens all the time, the bottom sub contractor is just naming everyone in order to get a “go away” payment.

  3. Raiders can’t pay their bills? Shocking. The shady subcontractor defense doesn’t wash. If their work was substandard there are relief provisions provided in a properly prepared construction agreement. There has been no showing of substandard work. Raiders will again likely need the taxpayers to bail them out. Committment to breach of contract.

  4. Love the construction contract experts popping outof the woodwork trying to say this falls on the Raiders. Being someone actually involved in construction bids and who has actually been working on the stadium project let me break this down. The Radiers and the Stadium Authority pay Mortensen-McCarthy who in turn pay Merrill Iron who is the one responsible for paying their material suppliers. A Subcontractor not paying their suppliers isn’t the property owners problem ifhemade his payments to the General Contractor as agreed upon.

Leave a Reply

You must be logged in to leave a comment. Not a member? Register now!

This site uses Akismet to reduce spam. Learn how your comment data is processed.