[WNC Goater]

That IS significant scratching like Ray said. I'm going to try the Chicago screws for assembly. I use them to position my belt clip, either horizontal or vertical and so that I can use a TechLock if I want so I see no reason not to assemble with Chicago screws...Ray thinks of everything!

I would also add two more layers of tape over the blade only. This will provide a little more clearance and help with the scratching.

Jim, I only used leather too....until I tried Kydex! You can wear the knife any way you want, even upside down and it will NOT go anywhere. I usually carry horizontal in the front. I can bend, wear a seatbelt...nothing bothersome at all with it. I can change my belt clip as needed or wear it around my neck on a lanyard. Remove the belt clip and add a TechLock and it will snap onto Molle straps, backpack straps, etc. And it's less expensive and takes a fraction of the time to build one. So other than not being pretty like leather and "traditional" then it wins hands down over leather IMO for functionality.
Having said that, a nice knife deserves a nice leather sheath and I provide one if someone prefers and I believe my leather sheaths look pretty good. But for MY working knife I'll take Kydex anytime.