HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform
Main Menu
Home
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration
Binding Arbitration Decision - Clark County Nevada can't hold contractor accountable for shoddy work
Thursday, 04 December 2008

County loses arbitration case, must pay $52.6 million to contractor
An arbitrator ruled Wednesday that Clark County must pay $52.6 million to a contractor it had publicly criticized for construction flaws that caused the Regional Justice Center to open four years late and millions of dollars over budget. ...a host of defects, including sloping floors, leaky windows, faulty steel-column footings and tic-tac-toe games scratched into doors... The county issued 120 noncompliance certificates and refused to pay the contractor until the glitches were fixed. It also penalized the company $12,000 a day for 10 months...Now the $52.6 million settlement cost could be added to the price tag.

County loses arbitration case, must pay $52.6 million to contractor 
An arbitrator ruled Wednesday that Clark County must pay $52.6 million to a contractor it had publicly criticized for construction flaws that caused the Regional Justice Center to open four years late and millions of dollars over budget.

The binding decision deals a blow to county officials who had blamed AF Construction for an array of defects plaguing the project and had expressed confidence about winning a long-running legal feud.

The county sued AF Construction, claiming the company's sub-par work led to cost overruns, excessive delays and breach of contract. The company countersued, saying the county defamed its reputation and withheld essential payments, driving it into financial hardship.

No written opinion was available Wednesday. But Don Burnette, the county's chief administrative officer, said the arbitrator backed AF Construction and awarded the contractor $39 million in damages plus $13.6 million in interest.

Burnette said the county will explore whether it can file an appeal and, if so, whether it will challenge the finding.

"We obviously need to read the decision, review our options and decide what option makes the most sense," Burnette said in an e-mail.

Burnette didn't specify what funds the county might tap to cover the cost of the settlement.

Attorneys representing the county and AF Construction weren't available to comment Wednesday. Paul Faulkner, the company's owner, also couldn't be reached.

While in the design phase, the 17-story justice center was hailed as a downtown centerpiece that would augment the area's redevelopment.

A $120 million bond issued in 1996 provided the funding.

In January 2000, crews broke ground at the site on Casino Center Boulevard after AF Construction turned in the lowest bid of $123.5 million.

But the project became mired in construction problems and bickering between the contractor and the county.

After work dragged on and troubles mounted, county leaders brought in Aviation Director Randall Walker to oversee construction because of his experience with large airport projects. Walker also couldn't be reached for comment Wednesday.

Walker ferreted out a host of defects, including sloping floors, leaky windows, faulty steel-column footings and tic-tac-toe games scratched into doors.

Company officials blamed the county's designs for many of the problems and insisted they immediately fixed whatever mistakes crews made.

The county issued 120 noncompliance certificates and refused to pay the contractor until the glitches were fixed. It also penalized the company $12,000 a day for 10 months.

The Regional Justice opened in November 2005, almost four years late, double the size originally planned and $60 million more than AF Construction had bid.

Now the $52.6 million settlement cost could be added to the price tag — a prospect that concerns one taxpayer advocate. With the local economy struggling and the state threatening to slash funding for county programs, this hefty judgment is ill-timed, said Carole Vilardo, president of the Nevada Taxpayers Association.

Vilardo said she was surprised at the outcome.

"I thought the county would prevail," she said. "That is just going to be another item that the county will be faced with as it tackles budget issues in the economic downturn."

Contact reporter Scott Wyland at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it  or 702-455-4519.

http://www.lvrj.com/news/breaking_news/35519989.html

 
< Prev   Next >
Search HOBB.org

Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon


Amazon
Barnes & Noble

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Consumer Affairs Builder Complaints

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

OUTSTANDING FOX4 REPORT
TRCC from Bad to Worse
Case of the Crooked House

TRCC AN ARRESTING EXPERIENCE
The Pat and Bob Egert Building & TRCC Experience 

Build it right the first time
An interview with Janet Ahmad

Bad Binding Arbitration Experience?
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or call 1-210-402-6800

Drum Major Institute
for Public Policy

Tort Deform
Report Your Arbitration Experience

 Feature: Mother Jones Magazine
Are you Next?
People Magazine - Jordan Fogal fights back
Because of construction defects Jordan’s Tremont Home is uninhabitable
http://www.tremonthomehorrors.com/
You could be the next victim
Interview with Award Winning Author Jordan Fogal

top of page

© 2024 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.