MGM Mirage picks Perini to build CityCenter

By Liz Benston (contact)

Friday, May 13, 2005 | 10:46 a.m.

MGM Mirage has selected Perini Building Co. Inc. as the general contractor for Project CityCenter, a $4.7 billion casino, resort and residential high-rise complex on the Strip that will take shape at the site of the Boardwalk hotel and casino over the next several years.

The $3 billion construction contract is the largest and most complex project in history for Perini, one of the nation's largest casino builders and Las Vegas' largest contractor by revenue.

CityCenter is expected to be the largest privately funded construction project in the nation.

"This is a world-class project," Perini President Craig Shaw said in a statement. "We are proud to be a part of Las Vegas history in the making."

Up to 8,000 people -- including Perini employees, subcontractor management and labor -- are expected to work on CityCenter, officials said.

MGM Mirage executives have said they expect the project to break ground in July beginning with the construction of an employee parking garage at Bellagio -- a process that could take a year. Bellagio workers now use surface parking behind the Boardwalk, which will eventually be demolished to make way for CityCenter's debut by the end of 2009.

MGM Mirage spokesman Gordon Absher said the process of selecting a contractor was a "very complex decision requiring in-depth analysis of the organization and personnel of each bidding company as well as an examination of costs and existing workloads."

Perini has built previous projects for MGM Mirage, including work at MGM Grand in Las Vegas and MGM Grand Detroit, Absher said.

Perini Building Co., based in Framingham, Mass., is a division of Perini Corp., one of the nation's top contractors.

A variety of businesses will be invited to participate in the construction of CityCenter in keeping with a corporate diversity policy at MGM Mirage, Perini officials said.

"Together Perini and MGM Mirage intend to aggressively work with minority, women and disadvantaged business enterprises to significantly increase their participation in Project CityCenter and to create vibrant business models for future growth," Perini Chairman Dick Rizzo said in a statement.

Perini Building Co., which maintains a satellite office in Las Vegas, generated about $309 million in billings from October 2003 through September 2004 and had about 144 employees as of last year.

MGM Mirage has named global architecture firm Gensler as the executive architect for CityCenter and Cesar Pelli & Associates as the design architect. HKS Inc. also will be an architect on the project. MGM Mirage is in the process of selecting design teams for the remaining portions of the project.