8-K

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                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                               ---------------

                                  FORM 8-K

                               CURRENT REPORT

   Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


     Date of Report (Date of earliest event reported) February 19, 1997



                    INTERNATIONAL ALLIANCE SERVICES, INC.
           (Exact name of registrant as specified in its charter)

                                      

             DELAWARE                    0-25890           22-2769024
   (State or other jurisdiction        (Commission      (I.R.S. Employer
         of incorporation)            File Number)     Identification No.)
                                                       
                                                          
        10055 Sweet Valley Drive                          
           Valley View, Ohio                                     44125
(Address of principal executive offices)                      (Zip Code)


       Registrant's telephone number, including area code, (216) 447-9000

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Item 4.       Changes in Registrant's Certifying Accountant

(a)    Arthur Andersen LLP ("Arthur Andersen") served as the independent
       auditors of International Alliance Services, Inc. (formerly known as
       Republic Environmental Systems, Inc., the "Registrant") for the fiscal
       years ended December 31, 1994 and 1995 and until February 19, 1997.
       Until October 1996, when the Registrant acquired its insurance
       operations through the merger of Century Surety Company, and its
       subsidiaries (the "CSC Group"), and Commercial Surety Agency, Inc.
       ("CSU") into subsidiaries of the Registrant (the "Merger Transactions"),
       the Registrant's operations consisted primarily of its hazardous waste
       operations.  The Registrant's specialty insurance, bonding and business
       services operations currently comprise a significant portion of the
       Registrant's total revenue.  Further, the Registrant currently intends
       to aggressively grow its specialty insurance, bonding and business
       services operations both internally and through acquisitions.  From 1987
       until December 1996, after the consummation of the Merger Transactions,
       KPMG Peat Marwick LLP ("KPMG") served as independent auditors for the
       Registrant's insurance subsidiaries, the CSC Group and CSU.

       It has been determined by the Registrant that its best interest would be
       served by retaining KPMG as its independent auditors.  Accordingly, on
       February 19, 1997, the Registrant dismissed Arthur Andersen and engaged
       KPMG as its independent auditors.  The decision to change auditors was
       approved by the Audit Committee of the Registrant's Board of Directors.

       There have been no disagreements between the Registrant and Arthur
       Andersen on any matters of accounting principles or practices, financial
       statement disclosure or auditing scope or procedures, which
       disagreements, if not resolved to the satisfaction of Arthur Andersen,
       would have caused it to make reference to the subject matter of the
       disagreements in connection with its report.  Further, the audit reports
       of Arthur Andersen on the financial statements as of and for the years
       ended December 31, 1994 and 1995 did not contain any adverse opinion or
       disclaimer of opinion, nor were they qualified or modified as to
       uncertainty, audit scope, or accounting principles.

(b)    KPMG has been engaged by the Registrant as of February 19, 1997 as its
       independent auditors.

Item 5.  Other Events

       On February 24, 1997, the Registrant announced its intention to acquire
M&N Risk Management, Inc. and M&N Enterprises, Inc.  (the "M&N Transaction").
It is contemplated that the Registrant will issue approximately 384,600 shares
of its common stock valued at $13.00 per share, and warrants to purchase
900,000 shares of its common stock at an exercise price of $13 per share,
exercisable for a three year period from the date of issuance, in connection
with the M&N Transaction.  It is anticipated that such transaction will close
by February 28, 1997.
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       On February 24, 1997, the Registrant also announced the consummation of
its acquisition of Midland Consultants, Inc. (the "Midland Transaction").  In
consideration for such acquisition, the Registrant paid $208,000 and issued
87,500 shares of its common stock valued at $11.625 per share, and warrants to
purchase 20,000 shares of its common stock at an exercise price of $11.625 per
share exercisable in whole or in part for a three year period from the date of
issuance.

       Subject to the occurrence of certain events, Alliance Holding
Corporation ("Alliance") has agreed to grant a proxy to Mr. Michael G.
DeGroote, Chairman of the Board of the Registrant, that covers the shares of
common stock of the Registrant held by Alliance.

       The descriptions contained herein of the M&N Transaction and the Midland
Transaction are qualified in their entirety by reference to the Press Release,
dated February 24, 1997, attached hereto as Exhibit 99.1, which is incorporated
herein by reference.

Item 7.  Financial Statements and Exhibits.

 (a)   Not applicable.
 (b)   Not applicable.
 (c)   The following documents are filed herewith as exhibits:
              16.1 Letter from Arthur Andersen LLP.
              99.1 Press Release, dated February 24, 1997.





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                                   SIGNATURES



              Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.



                                         INTERNATIONAL ALLIANCE SERVICES, INC.




Dated:  February 26, 1997                /s/ Edward F. Feighan                  
                                         ---------------------------------------
                                         Edward F. Feighan
                                         Chief Executive Officer and President





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                     INTERNATIONAL ALLIANCE SERVICES, INC.

                                 EXHIBIT INDEX





NUMBER AND                                                       SEQUENTIAL
DESCRIPTION OF EXHIBIT                                           PAGE NUMBER
- ----------------------                                           -----------
                                                           
16.1  Letter from Arthur Andersen LLP
99.1  Press Release, dated February 24, 1997

EX-16.1

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                                                                    EXHIBIT 16.1


                              ARTHUR ANDERSEN LLP


February 26, 1997

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549


Gentlemen:

We have read Item 4 included in the attached Form 8-K dated February 26, 1997
of International Alliance Services, Inc. to be filed with the Securities and
Exchange Commission and are in agreement with the statements contained in the
first and third paragraphs and the statement in the middle sentence of the
second paragraph indicating we were dismissed as independent auditors on
February 19, 1997. We have no basis to agree or disagree with the other
statements of the registrant contained in Item 4.

Very truly yours,


/s/ Arthur Andersen LLP
Arthur Andersen LLP

EX-99.1

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                                                                    EXHIBIT 99.1





FOR IMMEDIATE RELEASE

                                                     CONTACT: EDWARD FEIGHAN,CEO
                                                              -or-
                                                              GREG SKODA, CFO
                                                              CLEVELAND, OHIO
                                                              (216) 447-9000


 INTERNATIONAL ALLIANCE SERVICES, INC. ANNOUNCES THE SIGNING OF AN AGREEMENT TO
    ACQUIRE M&N RISK MANAGEMENT, INC., M&N ENTERPRISES, INC., MFC, INC., THE
 ACQUISITION OF MIDLAND CONSULTING SERVICES AND THE LOCATION OF IASI'S EXECUTIVE
                          OFFICES IN HAMILTON, BERMUDA

Cleveland, Ohio (February 24, 1997) International Alliance Services, Inc.
(NASDAQ : IASI) ("the Company") today announced the Company has entered into an
agreement to acquire M&N Risk Management, Inc. And M&N Enterprises, Inc. (M&N
Companies) from the Cleveland law firm of Millisor & Nobil Co. LPA, and MFC,
Inc. of Cleveland, Ohio for 384,600 shares of restricted common stock of
International Alliance Services, Inc., $1,000,000 cash and 900,000 warrants of
the Company's common stock at $13 per share over a three year period.

M&N Risk Management and M&N Enterprises, Inc. are two of the leading third
party worker's compensation administrators in Ohio.  The firms provide
employers with a turn key operation which integrate actuarial analysis and
underwriting capabilities with claims administration.  The M&N Companies
administer workers' compensation programs for over 4,000 self-insured and state
fund employers.  The M&N Companies are expected to add approximately $6.6
million to IASI's annualized revenues.

This transaction is set to close by February 28, 1997.

"International Alliance Services now has a key component for our wide ranging
business services with the acquisition of M&N Risk Management and M&N
Enterprises", commented Edward F. Feighan, President and CEO of the Company.
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"Workers' compensation has long been viewed as one of the central components of
a professional employer organization.  These companies, continuing under the
leadership of Kenneth Millisor and Steven Nobel will significantly enhance the
marketing of our SMR Business Services unit.  Through our SMR Business Services
Group, the Company markets a wide range of business services and risk
management products.  M&N Risk Management and M&N Enterprises, as part of SMR
Business Services, will give the Company the capability to market workers'
compensation benefits administration on a national level and should add
additional back office services to their client base."

The Company also announced the completion of a previously signed agreement to
acquire Midland Consultants, Inc. ("Midland") of Cleveland, a full service
specialized employment firm with expected 1997 annualized revenue of $2.4
million.  The consideration paid for Midland was 87,500 shares of restricted
common stock of International Alliance Services, Inc., $208,000 in cash and
warrants to acquire 20,000 additional shares of the Company at $11,625 per
share over a three year period, the share price was based upon the market price
of the stock at the time the agreement to purchase was reached.

Midland's experience, progressive networking, computerization and specialized
recruiting expertise will enable SMR Business Services to provide both its
client base and candidates with a professional, timely and cost effective
specialized employment service.

The combined $9 million of annualized revenue by these new acquisitions will
more than double the revenue of International Alliance Services, Inc.  Business
Services Group and bring the total number of corporate clients serviced by this
group to approximately 5,000.  This will greatly enhance the Business Services
client base and create further opportunities for cross-services rendered in
this highly fragmented, rapidly growing, outsourcing services industry.

International Alliance Services, Inc. also announced the location of its
executive offices at the Hamilton, Bermuda offices of MGD Holdings LTD., a
substantial shareholder of IASI.  Mr. Michael DeGroote, who is Chairman of
International Alliance Services, Inc. stated "the establishment of the
executive offices in Hamilton, Bermuda will place the Company in one of the
major reinsurance centers in the world."

International Alliance Services, Inc. is a diversified services company focused
on integrating risk management services with other specialized business
services.  The Company provides specialty insurance, bonding, environmental
remediation and business services to commercial enterprises in Canada and
throughout the United States.