Lawmakers take construction battle to arbitration

Nevada legislators want to take a battle over construction of the Southern Nevada Veterans Home to arbitration.

Deputy Public Works Director Evan Dale told the Senate Finance Committee on Monday attempts at mediation have failed. The state took over the contract and finished the home several years ago, saying the contractor failed to do the job. The contractor was paid more than $14 million of the $16 million contract. The state used the remaining $1.8 million to finish the construction, he said.

Dale said the issue has been in litigation since, with the contractor demanding an additional $15 million in damages.

Dale said arbitration should begin in November and is expected to last about five weeks. He said $673,900 is needed to pay the cost of arbitration, including expert witnesses and exhibits.

"It appears we have no choice at the moment," said Finance Chairman Bill Raggio, R-Reno. The committee voted to request a bill appropriating the money.