B2B Payments

Raiders Stadium Caught In Contractor Non-Payment Lawsuit

National Football League franchise the Oakland Raiders has been named in a lawsuit amid allegations of non-payment for construction on the team’s new stadium in Las Vegas.

Reports in the Las Vegas Review-Journal this week said a subcontractor working on the stadium, ADF International, filed a lawsuit claiming it is owed $2.8 million for its work. The case names the Raiders, Las Vegas Stadium Events Co., the Las Vegas Stadium Authority, general contractor Mortenson-McCarthy, Merrill Iron & Steel and other companies in the lawsuit as defendants, according to reports.

The publication said Las Vegas Stadium Company chief operating officer Don Webb claims the legal dispute is between ADF and Merrill Steel, and no other entities named in the lawsuit are actually involved.

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

The case accuses Merrill of breach of contract by failing to make timely payments on its invoices. Merrill declined to comment on the case, while ADF officials were not available for comment, the publication noted.

According to the publication, the legal dispute has not compromised construction on the stadium, with the project expected to be complete next month.

The construction sector is notoriously difficult for contractors and subcontractors to send and receive payment in a seamless, timely manner.

“Something unique about payment in construction is that it’s different than just getting money from point A to point B,” said Scott Wolfe, CEO of construction payments company Zlien, in an interview with PYMNTS last year. “It’s not like you have accounts payable, accounts receivable and it’s game over. There are many more layers to that, and there are a lot of expensive risks with construction.”

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