Saxton Inc. of Las Vegas, which was accused by the Nevada State Contractors' Board of operating as an unlicensed contractor, has agreed to assign work on five projects to a general contractor as part of a compromise with the board.
This arrangement allows Saxton to remain in the construction business pending consideration of its new license application Aug. 7.
Saxton sued the board on April 18 to reinstate a contractor's license it says was unlawfully revoked by the board because of complaints against Saxton's predecessor companies and concerns about Saxton's financial situation. The builder claims the board jeopardized its business when it ordered Saxton to stop construction on certain projects earlier in April.
But the board argued it didn't contribute to Saxton's financial problems and that Nevada statutes should not be circumvented to allow a contractor to operate outside the law. The board said Saxton's financial statements, which allegedly show a negative working capital position of $2 million, would not support a new license unless it received additional financial support such as an indemnification.
"How can Saxton be financially responsible to pay subcontractors when it can't even qualify for a license? " the board asked.
But Ron Worley, Saxton's vice president of compliance, disputed the charges and said the company was preparing a financial statement for the board.
"The board didn't tell us how they came up with that $2 million figure. According to our year-end financials, Saxton still showed a net worth of $9 million."
Worley said a hearing scheduled for last week on the lawsuit was taken off the calender after Saxton agreed to assign four Las Vegas single-family home projects and one Sparks-based townhouse project to Las Vegas-based contractor M.J. LeVan Construction. LeVan was hired by Saxton on May 8 to manage and supervise the five projects and approve invoices for payment.
He also downplayed concerns about Saxton's financial standing, saying LeVan agreed to manage the project because Saxton assured the contractor there would be adequate funding from five construction loans that Saxton obtained from several banks to cover the remainder of the projects' cost.
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