Facebook
Fark
Digg
Reddit
Stumblegaming:
MGM Mirage seeks CityCenter subcontractors meeting
Tuesday, May 25, 2010 | 1:27 p.m.
Sun Archives
Casino operator MGM Mirage is inviting subcontractors on the $8.5 billion CityCenter complex to work toward settling millions of dollars in claims stemming from a dispute with the project's primary contractor.
MGM Mirage said Tuesday the company wants to meet with subcontractors June 9 at Aria. Chief MGM Mirage Design and Construction Officer Bobby Baldwin will host the meeting.
MGM Mirage is at odds with Perini Building Co. over $490 million that Perini says is owed for its work on the Las Vegas Strip resort, shopping and casino complex.
MGM Mirage believes it owes less.
Perini has filed liens, sued MGM Mirage and met with Nevada's governor over the dispute.
MGM Mirage has filed a counterclaim.
Discussion: comments so far…
Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
No trusted comments have been posted.
Post a comment
Most Popular
- Viewed
- Discussed
- E-mailed
- Superstar Whitney Houston dies at 48
- Two dead after accident in downtown Las Vegas
- UNLV can move forward without the burden of losing streak to San Diego State
- A wife’s wisdom shows birth control issue needn’t be divisive
- Vegas oddsmaker expects Adele to have a great night at Grammys
- UNLV makes key plays down stretch to hold off San Diego State 65-63
- Hope and change and … what’s missing?
- Surprise links, negotiated deals addressed by commissioners
- Mitt Romney wins Maine caucuses, CPAC straw poll
- New York mayor has the right idea
Blogs
The Kats Report
Color from scene at Thomas & Mack: We have a wire job! Rebels win, and Louie Armstrong sings!
South Point owner Michael Gaughan's take on 'Vegas Stripped': 'I'll give it an 8' (4 Comments)
Author relishes writing the life story of ‘larger-than-life’ Oscar Goodman (3 Comments)
Elsewhere
Landowner: All roads could lead to Uxbridge casino
Revel reveals smoke-free casino opening
Cirque du Soleil show in Sands China casino to close this month
Meet the woman behind Sheldon Adelson
The Sun
Locally owned and independent for more than 50 years.
What is this going to do, all that's going to happen is the subs will talk about how they want payment and take Perini's side.
This isn't going to look good for MGM.
Isn't it ironic. MGM was in such a rush to finish that they never had time to review drawings or change orders. Everything was done on the fly. Now that the project is prety much complete they are taking their time and want to account for all the changes . Where were they when the project was being built? What about their complacency to the safety of the contractors. The bottom line is that they took shortcuts which affected the project and they should be held accountable!!!!!!!!
Perini is supposed to pay subs. MGM has paid Perini. MGM is being the good guy by meeting with the subs and trying to work an agreement out. It's insane that some readers don't realize that MGM was short changed (literally in the Harmon construction) by Perini. Are Perini the good guys? Hell, I wish I could come 40% over-budget with an inferior product and not get any blame. Remember, City Center was supposed to be approx $6.5billion when it was designed, but numerous change orders caused that to balloon up. The general contractor (Perini) is responsible for that.
I just got a PM saying I'm talking out of my arse from Lectrocuda, but I sincerely doubt that he had any insight as to what change orders were given to MGM. He made a point to say that MGM designers messed with designs. While I guarantee that MGM had designers and architects who sucked, the overall responsibility of the project lies with the general contractor. If Bechtel jacks up a job for McCarran Intl, then they are left with the bill. It happens often when jobs are botched. I might not be on the site, but I've audited contruction projects before...
At acountmakr,
Perini can't be held liable for a 40% over budget charge. There were over 2400 Change orders on the crystals alone. Whenever there is that many change orders then it's obvious a budget isn't mattered about. MGM was spending like a kid with an allowance in a candy store. Once the recession hit and MGM realized they were spending too freely they had valued engineered all the stuff out that months of procurement went towards, lost time, product and material. MGM is at fault and hasn't paid Perini the last 500 million and the whole Harmon plot to hold that against Perini is Bologna. MGM told perini to cap it at 28 floors when given the option to build up to the original 56. I've said it before and I'll say it again.
Okay how does the process take place. MGM wants to build a building, they find a lot, Hire some architects, designers, and engineers. They draw up some plans and put it out to bid.
I am saying from first hand experience. When it is 30 days till opening and the engineers are on site changing smoke zones. THEY SCREWED UP. Its not the generals responsibility to engineer the building, its their responsibility to ensure its built to spec. That being said, Perini is the worst GC ever. They were good for nothing except breaking our balls, while they did have good people who worked for them, they would go through supers like a bar goes through dishwashers. I am not saying MGM is at fault, but I do think that their engineers hold some of the blame. Every print that had flack and kurtz on it was crap, and every print until NOV 2009 said "not for construction" so should we of waited until NOV 2009 to start building? I mean really most people have no clue that some of the most important systems in that building were literally sketched on napkins. I think the workers who built that place deserve all the recognition. I would work 18hrs straight to get that place open on time, under terrible conditions. Yet walk in there in tell me how bad it came out.
In response to acountmakr, trust me I have plenty of insight seeing I was one of the key players in the "vatican" but obviously you have know idea what that was. City Center was like no other job ever and if you think it was you are blind, and ignorant. No job has ever been done that way and I dont think it will ever happen that way again.
To ACOUNTMAKR.......... What projects did you audit ? Playgrounds? Your an AS_!! The responsibility for the cost overruns is that of the owner(MGM)With all the changes and the rush for the job to get done they should be held accountable and pay plus accrued interest!
Why would Perini Construction CO. say that MGM/Mirage owes them $490 million for completed work on the City Center if it weren't true. Perini has nothing to gain, they probably wouldn't even want to own City Center. MGM/Mirage has had nothing but financial problems from the start of the project. It make me believe that MGM/Mirage did not have financing for the project and everything that was submitted was just on paper. MGM/Mirage knows they owe Perini and is trying to strike a deal for a lot less. I hope Perini holds out and gets what they are owed.
This whole City Center project has been a mistake from the very beginning. It never should have been built. The Boardwalk was just fine as far as I'm concerned..
Jim Murren will come down for the meeting and reach into his backpack for money to pay the local subs a small percentage of their final billing, and they will accept it or no longer get work for MGMM. Then, an MGMM spokesperson will issue a statement, which both Las Vegas newspapers will post, and MGMM will become the local White Knight, a PR positive. Then MGMM will commence to try to tackle Perini in the Nevada court system, homebase.