Wynn Palace delays costs contractor millions

Construction delays for Wynn Palace, which was originally for completion on Mar. 25, has caused the construction company, Leighton to lose a bonus of MOP 303.34 (US$38 million), Las Vegas Sun reports.

During the launch of his daughter’s slipper line, Steve Wynn commented on the terms of the bonus. “What has happened is that for the past six months the builder, Leighton, had a 90-day completion bonus of $38 million.”

“March 25 was the date. They had been telling us up until two or three weeks ago, ‘We’ll make it,’ and they had to tell us in advance so we could start hiring people for the whole run-up to the opening.”

However, the date was pushed back to Jun. 25, with penalties to be observed should it not meet the deadline, Wynn adds. “If they don’t make June 25, it’s a $1.5 million-a-day penalty,” Wynn said. “If they don’t have the first five floors done by Dec. 24 and we have accepted them, it’s $200,000 a day. Then, on Jan. 24, if they don’t have the next 10 floors, it’s $200,000 a day. They say they are in good shape — but they’re not going to make the early bonus.”

Wynn explained the delay was caused by construction problems.  “They just bumped into some problems. But the furniture has been ordered and the fountains have been tested.”

Latest Intelligence

Latest issue

PATA CEO sees slow recovery, but optimism for future

AGB Podcasts