Las Vegas Sun

March 29, 2024

Trump’s personal touch pays off in Las Vegas

If anyone had any doubts about Donald Trump being a hands-on guy when it comes to any of his projects, talk with Richard Rizzo.

The vice chairman of Perini Building Co., which is building the Trump International Tower & Hotel in Las Vegas, said he was surprised at Trump's request to participate in the process when Perini seeks bids from its subcontractors.

Normally, a developer relies on Perini to solicit bids and get the lowest prices possible for its building projects and make recommendations.

In an unusual request, Trump wanted to review every bid that went out and have the ability to contact the subcontractor and negotiate an even better price. Rizzo said he felt a little uncomfortable about the request since that's his company's job, but he ultimately agreed to it as long as any contact was kept professional.

Trump went through every bid package and contacted every subcontractor on the job.

"He picks up the phone and calls the lower bidder and says, 'This is Donald Trump. Can you do better? I am about to award you this contract, but I am not sure you have given me your best shot here.' Son-of-a-gun, if he doesn't get another 1, 2, 3 or 4 percent out of it,' " Rizzo said.

Rizzo said he apologized to Trump, saying he felt embarrassed that Trump was able to do that and his firm wasn't.

"He said, 'Don't be embarrassed at all. It's just my name,' " Rizzo said. "He said, 'My name will carry the day, and I want to use it to my advantage.' I would have never believed that you could pick up the phone and call somebody and ask them to cut your price by whatever and get them to do it after they had already been beaten over the head a few times by us."

Rizzo said some subcontractors said no to Trump's request. Someone cut their price as much as 5 percent, he said. Trump's phone calls cut about 2.5 percent off the price, he said. That's worth nearly $9 million on $350 million in bids to subcontractors, Rizzo said.

"It was certainly worth his effort. I guess if you got a call from Donald Trump out-of-the-blue (it would have the same effect). Egos are big in this business. There are a lot of Type A people and they love to be the biggest and the best. They can tell people they talked with Donald Trump. I guess they are willing to pay the price for that, I guess," Rizzo said laughing. "I would have never believed it that he could do it, but there are a lot of people enamored with who he is and the image he has created for himself."

Rizzo also pointed out how Trump picked out the marble and certain finishes for his project.

"He gets involved in a lot of details I would have never thought he would have," Rizzo said. "It is his name he puts on it. It is his trademark, and he wants to make sure there is a level of quality that reflects the level of his name."

Trump hasn't announced any other projects in Las Vegas beyond his second tower, but Rizzo said he wouldn't be surprised if Trump remains active in the market.

"He has been so successful," Rizzo said. "His name is one that attracts investors."

The developer's office park was given the 2007 Construction Specifications Institute Las Vegas Construction Award for projects more than $50 million. The National Association of Industrial and Office Properties recently honored the developer for its project as the best multiple-use business park. The developer is nominated in four categories for the upcoming Best of Nevada Real Estate Awards. Winners will be announced Aug. 11.

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