Numerous Nevada construction companies are lining up to file liens against the $1.5 billion Venetian resort and its construction manager.

County records show that since March 9, 47 separate construction companies have filed liens totaling $54.9 million against the Venetian, Lehrer McGovern Bovis Inc. and others.

The liens range from as low as $1,563 up to almost $13 million. And the number has risen sharply in recent days.

"That list you've got is nothing compared to what it will be," said Gene Newton, chief financial officer of Saffles Construction Co. Saffles has filed $1.2 million of liens for work done on the project.

"There will be more than $100 million of liens filed against Bovis and the Venetian, all by local subcontractors employing and paying local people," Newton said Thursday.

"We estimate this could wipe out between 40 to 50 Las Vegas subcontractors," he said. "I had a guy come into my office today and tell me he took a $60,000 hit, and he can't afford a $60,000 hit. He's going to lose his business and his home."


Some subcontractors had crews working 24 hour days to get the Venetian open, relying on promises from Lehrer McGovern Bovis and Venetian officials they'd be paid for their work.

"But they stopped making payments about 30 days ago, after we'd gotten the first section of the place open," he said. "We continued working to help them out because they kept promising to wire money into our accounts.

"When you cut through all the crap, it's Bovis and (Venetian owner Sheldon) Adelson. They built the building, they're making the profits, and they're doing it by not paying people. Anybody can build a billion-dollar building and only pay for half of it."

Bovis spokesman Sam Singer acknowledged today that subcontractors aren't being paid, but he said that's because Bovis and the Venetian are negotiating over who is responsible.

Adelson and other Venetian officials have consistently denied the resort has suffered from cost overruns in the $643 million construction phase.

89 liens have been filed against the Venetian through mid-July, and the number of new filings has accelerated recently as payment to subcontractors slowed to a trickle.

"There's never been a project here that's had this many liens that just haven't been paid. Bovis told us, 'We haven't been paid, so we're not paying you.' "

If the negotiations between Bovis and Adelson prove fruitless, contractors may try to foreclose on the Venetian, Newton said.

Adelson is already facing a liquidity crunch because the resort isn't generating enough revenue to make interest payments on its $930 million of debt. - lv sun 07/31/99





[This message has been edited by Mark (edited July 31, 1999).]