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MGM Mirage’s $9 billion CityCenter project is seen from the Panorama Towers. In the wake of errors made in the placement of reinforcing steel on the project’s Harmon hotel, Clark County has changed its policy in regard to the inspectors who work on the site.
Monday, Feb. 9, 2009 | 2 a.m.
Sun Archives
- Adaptation or ‘disaster’?: Depends on your view of the Harmon (2-8-2009)
- County wants proof CityCenter structures are free of defects (2-6-2009)
- Watchers were not watched (1-15-2009)
- How did CityCenter tower flaws persist? (1-8-2009)
- MGM Mirage cancels CityCenter condo project (1-7-2009)
Perini Building Co. is disputing Clark County’s claim that construction problems alone — and not design problems — led to the faulty installation of reinforcing steel at CityCenter’s troubled Harmon tower.
In a statement Friday, company President Craig Shaw said Perini “stands by its opinion that design conflicts contributed to the Harmon Hotel structural issues and that portions of the structural drawings, as designed and permitted, contained elements of reinforcing steel that could not be installed as drawn.”
Perini, the general contractor on the $9 billion project, also attempted to implicate Pacific Coast Steel, the project’s reinforcing steel contractor, and Converse Consultants, the third-party quality control inspectors for the site.
“Unfortunately,” Shaw said, both companies attempted to resolve design conflicts by “modifying the placement of the reinforcing steel, as it was installed.” Because the third-party inspectors did not notify the county or Perini of the problems, “these issues did not get elevated to the appropriate ... levels of authority,” Shaw said.
The company’s attempt to assign blame to Clark County, the subcontractor and inspectors foreshadows what is likely to be a lengthy battle over liability for extensive remediation on the 15 floors of the Harmon, where the reinforcing steel was improperly installed. The structural problems, along with the faltering economy, prompted owner MGM Mirage to shorten the Harmon by 21 floors — from 49 stories to 28 stories.
The county has consistently maintained that the plans it approved for the project were drawn up accurately and should have been easy to decipher.
“If they had followed the plans, there would not have been an issue,” county spokesman Dan Kulin said Friday. “The subcontractor (Pacific Coast Steel) did not follow the approved plans.”
Pacific Coast Steel and Converse Consultants have not returned calls for comment.
In a July letter, project engineer Halcrow Yolles defended the building’s design.
“The current information we possess leads us to believe that our design has been adversely compromised,” Halcrow Yolles associate Trent Miller wrote. “The apparent lack of quality control that has occurred must be addressed and resolved before the continuation of construction of the tower.”
Halcrow Yolles representatives have declined to comment on the Harmon.
The 15 floors of wrongly installed rebar were discovered last summer by a Halcrow Yolles representative. By then, much of the rebar had been covered in concrete.
County officials have noted that if the subcontractor or general contractor found the drawings problematic, they could have formally requested that the engineer clarify the plans.
In addition, people familiar with the project say Perini should have had its own quality assurance officers on the site to catch the problems.
The Nevada State Contractors Board is the venue where the question of which party is responsible for the problems will be disputed.
Two weeks ago, the county sent the board complaints against Perini and Pacific Coast Steel.
State investigators will determine whether the cases should be brought before a hearings officer who could issue large fines against the companies — or even revoke their licenses.
License revocation usually occurs after a company has racked up numerous complaints, said Hal Taylor, a Reno licensing attorney who has served as counsel to the Contractors Board.
The board’s databases show no record of any decisions against Perini or Pacific Coast.
The board is prohibited from releasing information on complaints filed against contractors that have not yet resulted in decisions, board spokesman Art Nadler said.
With a company as large as Perini — a construction giant that has worked on numerous large casino projects in Las Vegas and elsewhere — “there might be some political complications,” Taylor said.
“The board is not afraid to take on large contractors but it gets more complicated with a large project with a lot of paperwork,” he said.
In such cases, the strong likelihood of civil litigation often plays a role as the parties seek leverage and use the results of the investigation in their negotiating strategies, Taylor said.
The dispute will also play out at the Nevada State Engineers and Land Surveyors Board, to which the county sent a formal complaint against Don Christiansen. He supervised the Converse inspectors who wrongly signed off on compliance reports.
In a letter, Clark County principal engineer David Durkee asked the engineering board to investigate Christiansen’s conduct.
Yet another venue will handle the county’s own administrative hearings.
In a Jan. 9 memo, Durkee recommended Converse “be sanctioned in accordance with the provisions of the Building Administrative code” following a hearing. County code requires that a hearing officer determine any sanction for Converse, which the county believes violated code in issuing false reports.
The problems have also led to a change in policy at the county.
County monitors, who are charged with overseeing third-party private inspectors such as Converse, received formal written word last week that they are to physically observe construction practices at CityCenter a minimum of two times a day, rather than merely review paperwork and act on reports from private third-party inspectors, Kulin said.
That addresses an area of concern that arose after the Harmon problems surfaced: The two county monitors tasked with overseeing the roughly 50 private third-party inspectors at CityCenter did not appear to have physically observed rebar installation at the Harmon.
Until last week the county had never issued formal written instructions requiring the monitors to physically observe the special inspectors and physically spot-check their work. Instead, they were formally tasked with reviewing reports from the private inspectors and acting if they spotted problems. The monitors can also issue violations against third-party inspectors for inspector misconduct.
Before the new procedures were outlined, some in the department — including its chief — had said physical checks on inspectors’ work was an important aspect of the job. In an interview with the Sun last month, Ron Lynn said he expected monitors to go to building sites and watch as inspectors did such tasks as taking concrete samples to make sure they were properly doing their jobs.
Now — at least for CityCenter — that expectation has become formal department policy.
I worked on city center. Why aren't the problems on the veer towers and the pelli being addressed?
The problem is apparent in words being spoken and actions being taken as a result of being caught. No accountability. Zip. Zilch. Zero.
Anyone who might hire Perini should note, their size and arrogance prevents them from EVER being at fault for anything. That's not the same is hiring a competent builder. That's hiring a builder who has created an effective mechanism to deny it's incompetence.
Shame on all involved. This is a horrible mistake. Horrible with a capitol "F"! The people of Las Vegas are extremely upset with you for taking a massive dump on the Strip.
Maybe you should change the name from "The Harmon" to "The Halfman"? Fitting for those who are actually to blame for this.
"With a company as large as Perini -- a construction giant that has worked on numerous large casino projects in Las Vegas and elsewhere -- "there might be some political complications," Taylor said.
"The board is not afraid to take on large contractors but it gets more complicated with a large project with a lot of paperwork," he said."
This is crazy, am I reading this quote right? I didn't realize a company can have a lot of paperwork and that makes enforcement a problem. The contractor's board is a sham. Ask any contractor in Nevada and they will say the same.
Too much paperwork; well roll up your sleeves and get to it.
As for political complications; run their names and faces on the front page and watch how fast that crap ends.
"...run their names and faces on the front page and watch how fast that crap ends."
Hehe. Good point!
Perini Contracting has always been known for shoddy building practices and death.When we built the Luxor I think we only lost three or maybe four workers and the building has sunk 4-7 feet there's red iron studs near the outside structure that are just bent and twisted,And this isn't second hand information Iv'e been witness to it,O and lets not forget the Disaster known as the Big Dig in Boston among other things the collapse of the roof in one the tunnels.Im not sure how many fatalities but there was some.If you work on a Perini job there stock in trade is disorganization which in turn leads to all there problems.
With a company as large as Perini there should have been quality control inspections being done by Perini as the work was completed. The general contractor should be held responsible for the performance of the subcontractors that he has contracted with. It is time for everyone to take responsibility for their own actions and mistakes. And that includes Perini.
In Nevada the general contractor is responsible for the deeds or misdeeds of the sub. Unless you are a big company that is well connected.
It's simply amazing that this would happen. It's unbelievable to comprehend that this tower has to be cut off at the knees. What a shame. We'll see how it turns out at the finish.
I am sure the architect is not too happy.
I'm thinking of it as The Stub.
What's funny is that Perini, from Framingham, Mass. was always known as a mob-connected company years ago. Now, I assume they are not in the Mafia in any way. What is sad is that, as Mayor Goodie pushes for a Mob Museum, we may end up with our own mob building courtesy of Perini. What goes around.....
There are too many things going on at once. What does it say about a company as large as Perini when they didn't check their own work? It's only rebar...
I wouldn't be surprised if the other City Center buildings have issues.
1. The reporter, gravely and unfortunately, is going exactly where Perini wants her to go: on a wild goose chase. Why did she have to go 400 miles north to Reno to obtain a quotation from a "credidble expert (TAYLOR), who himself in essence said political complications will require a WHITEWASH.
Her only route to serve the public and win herself a Pulitzer Prize for investigative reporting in 2009 is to go for the juggler.
Perini Corporation's largest shareholder is United States Senator Dianne Feinstein.
WAR PROFITEER...see attached....
http://www.freerepublic.com/focus/f-news......
This will be a WHITEWASH. I can guarantee you this. John Ensign will not stand for an investigation of Perini because of her. Mister Majority Leader Reid will not go after her.
on January 20th 2009 over one billion people around the world looked at Barack Obama with his hand on Lincolns Bible taking the Oath of Office and right at the new Presidents shoulder in a Homburg Hat and a vicuna coat stood Richard "Dick" Blum, DiFi's husband and majority stockholder of Perini Corporation.
It's built like a house of cards.
The out of state unlicensed sales of the condo's in California by City Center Broker of Record Bob Hamrick is a great train robbery of peoples trust...hundreds and hundreds of illegal sales....Terri Lanni....A FRAUD.....Booby Baldwin an engineer?...HA....SCRAP it and send the steel to China....ITS A TRAGEDY and will be as cursed as Tutankhamen's Tomb for generations to come.....good luck to the reporter...wicked bad assignment to get stuck with, poor girl....
As a form carpenter for Perini for on several projects;I can tell you most of them are a bunch of alcholics,drug addicts and just plain loser's.I just need a paycheck and keep my mouth shut.They will fire you in a heart beat for nothing
Oh yea I forgot to tell about their flippant attitude on saftey.Yust get it built as fast as you can;we will fix it later.Gotta make the boss look good.I am glad I can retire from Local 1977 which is a joke when they started giving out union cards
This is the way it appears to me.
This is in response to numerous articles in the Las Vegas Sun regarding the defective rebar installation at the Harmon.
After all the smoke clears and finger pointing is over in the Harmon matter, there are clear contracting principles in play that will govern the legal remedies of the parties. Nevertheless, even a clear and ultimate adjudication of the contractual issues will not compensate for the aesthetic disaster, and potential safety hazards, that have arisen from this debacle at City Center.
The initial project organization was overly complex. One player that appears to be missing is that of a construction manager reporting to the project owner,MGM. The construction manager is usually charged with the obligation to coordinate and integrate the design, construction and inspection contractors on a major project, including the general contractor ( in this case Perini). In the case of the Harmon, and no doubt the entire City Center project, there is no construction manager assigned to perform this role. The owner, MGM, certainly is not qualified to perform the role of the construction manager.
The complicated organization and diffusion of accountability in this project model doomed this massive project from the beginning. To resolve the duties, obligations and rights of the parties at the Harmon, and the liabilities, the underlying contracts of all the parties will need to be examined carefully. One thing that is certain in principle, is that the general contractor, Perini, is responsibile for the acts and omissions of its subcontractors. Perini may have transferred certain risks via its contract with the construction subcontractor, but it is the ultimate obligation of Perini to oversee and ensure that the work of its secondary contractors(including inspectors) conforms to the requirements of the prime contract between the owner and Perini.
"Perini Corporation's largest shareholder is United States Senator Dianne Feinstein."
So DiFi caused Perini to build a monument to impotence? I can see that. It happens to a lot of men when they are faced with powerful women.
Gee, now I feel bad for them. Must be hard to be so unsure of your manhood that you have to erect a massive monument to it. Too bad for DiFi as well I guess. I imagine she thought they could get it all the way up. Now, not only is it short, but there are questions about whether it will stay up? How disappointing.
Maybe if they tell her that this has never happened before, she will overlook it. Well, sort of turn her head away and smirk first, but then maybe......Nah! She'll never forget it!
You can smell a pig farm long before you "see" it. Perini can hide its stink for only so long.
one good earthquake and it all comes down, baby and all.
Before we all jump on the condemnation bandwagon, how bout we get some detail on what the issue is.. Is the rebar off by 1" or 4" or more? Is there missing rebar?
And what the heck does it matter who the stock holders are. Its a publicly traded company....
And there IS a Construction Manager that oversee the project. Tishman.. For those not in the know, Tishman built half of downtown LA and NY and, and .
Yes this is a disaster, but its concrete and rebar not a rocket to the moon. Eventually, the engineers will come up with a fix and the building will be completed. I don't see the economic sense of doing that now, but when the banking industry returns to "normal" and the sales dictate, it will make sense then..
Thanks for clarifying that Tishman is the Construction Manager at CityCenter. A recent ENR article indicated that Tishman transfered from Echelon where it was Executive Construction Manager to be GC for a number of the interior finishes at CityCenter. Therefore is was not clear from this account that Tishman was also the CM at CityCenter. Also, Tishman was not mentioned in the article describing the rebar fiasco. I wonder how close Tishman is to the work, that the rebar incident escaped detection by them?
Thank you, Vegas_Developer, for an intelligent, informed comment. Too many of these jaded comments seem to be coming from people who have been personally burned by Perini, or resent the massive CityCenter project, or some other reason. Perini is a large, 115-year-old company that has built numerous projects all around the world with few failures. We ALL experience failures from time to time, don't we? Ease up on them, for God's sake! I'm getting tired of all the negativity and blame, especially when it comes from people who are not informed of the facts. Do your research before ripping this company to shreds time after time!
I endorse mix_vixen's comment. As a matter of interest I am trying to get to the meat of the org stucture for this project.
Since the time this article was written, I have been informed that Tishman is the construction manager for CityCenter.If that is the case, I am curious what Tishman's duties are under its contact with MGM Mirage, whether Tishman may have had any role to play in this matter, and why Tishman was not even mentioned as a player in this article.
CM's typically contract direct with owners and coordinate/integrate the activities of various other contractors on site. So what is Tishman's role on CityCenter? Just interested. Anybody know?
"In a letter, Clark County principal engineer David Durkee asked the engineering board to investigate Christiansen's conduct".....The Las Vegas Sun Feb 9, 2009.
" Mr. Smith is Vice President, Regional Construction Manager at Converse working out of the Las Vegas Office. He has over 18 years of experience in Construction Inspection and is responsible for managing a staff of over 85 technical personnel. Mr. Smith has direct responsibility for managing all Converse materials testing and inspection projects in southern Nevada and Arizona. His duties include client management and relations, directing investigations for material failures, budget management, supervision of materials testing in both the field and laboratory, review of all inspections, development of concrete mix designs, preparation of final reports and direct supervision of all project managers. His project management experience includes responsibility for projects of various scopes and sizes, including high rise structures, hotel/casino properties, commercial developments, industrial buildings, parking structures, residential developments, flood control and pipeline projects, streets, highways, bridges, and utilities, as well as some of the largest, highest profile projects in company history." from Converse Consultants Web site www.converseconsultants.com