Source: http://www.lasvegassun.com, March 22, 2001
More than $1 million might be needed to cure construction defects at the Lied Library at UNLV, and the state is preparing to do legal battle with the contractors and subcontractors who claim they are still owed $6.5 million for extra work.
The state Board of Examiners received an update Wednesday about the problems with the library that began as a $40 million construction project that was due to be completed in October 1999. The cost, however, rose by $3.6 million, and the university didn’t occupy the building until January.
State Public Works Board Manager Dan O’Brien said he has withheld $365,000 as the final payment to contractor Tibesar Construction Co. because there “are lots of things to be done.” O’Brien has hired PinnacleOne, a firm that performs professional analysis of construction claims and assesses the quality of the work.
PinnacleOne conducted a cursory inspection and told the board there were dozens of deficiencies.
Ali Taghdir of PinnacleOne of Sacramento, Calif., said he found water seeping in the vestibule, improperly fitting windows, gaps between the walls and the ceilings, a “panic” door that could not be opened, uneven floors, electrical wiring problems, a fire sprinkler that is not properly fitted in the ceiling, ceiling panels that are not aligned, hand rails that are not properly installed and mill work that was not up to the premium quality called for in the contract.
In one case. the roof was slanted the wrong way so any moisture would roll toward the building, instead of away from it. A door was not fitted properly. And there was no sealant in a drywall area.
After the meeting, Deputy Attorney General Brett Kandt said $1 million may be needed to “correct the shoddy work.”
According to PinnacleOne’s preliminary estimate, it will require more than $1 million, possibly several million dollars, to correct the deficiencies.
Attorney General Frankie Sue Del Papa has hired Las Vegas attorney David Johnson. Del Papa said there are $6.5 million in claims from the contractors and subcontractors.
“This could end up in litigation. We are gearing up,” Del Papa said.
O’Brien, who took over the Public Works Board fewer than four months ago, told the board that Tibesar submitted the lowest bid of $40.5 million for the project in 1998. That was $2 million lower than expected, and the agency returned that money to the Legislature.
This prompted an angry response from board chairman Gov. Kenny Guinn, who called the move “ridiculous.” He said that extra money on these major projects should be set aside to pay for change orders that always develop. He said if the Legislature wanted the money, then let it pass a bill.
He said the Legislature “has got to stay out of it.” He was referring to any litigation that might arise from this project. He indicated he was annoyed with the part the lawmakers sometimes try to play, when in fact it is the executive branch that is responsible for these projects.
“The Legislature needs to be careful they don’t interfere with this,” said Guinn referring to the potential suits.
O’Brien said there were 193 change orders on the construction, at a cost of $3.6 million.
The $6.5 million in claims not paid by the state include $226,359 from Tibesar; $2.1 million from Helix Electric; $599,020 from Embassy Glass; $971,702 from Micco Drywall; $825,572 from Hansen Mechanical; $542,867 from Arco Electric and $589,476 from Hansen Mechanical.
In addition, the architect, Welles Puglsey, has filed a claim of $677,603 for extra work.
Many of these claims, O’Brien said, contain “fluff.” There may have been some work done, but these contractors are trying to load on “indirect costs,” such as overhead at the home office. The state said O’Brien is not going to pay to “keep the lights on in the home office.”
The Legislature also has ordered an audit of the state Public Works Board.
Guinn said the board should hire its own inspectors to be present at the construction site every day to make sure everything is up to code. O’Brien said the state had two inspectors, but there was a turnover in the staff at the time.