Perini Building Co. and MGM Mirage are preparing for a court battle over
nearly $500 million in disputed construction bills at Las Vegas CityCenter, an
$8.5 billion project, the largest private project in U.S.
history. "The claims and counterclaims in this case are immensely
complicated and complex," said George Ogilvie, managing partner with
McDonald Carano Wilson LLP, which represents Perini. "The court and the
parties must be mindful of the impact of this litigation not only on
Perini, but also on the subcontractors and suppliers whose livelihoods
and very existence are at stake."
MGM Mirage gains greater negotiating leverage by bypassing its general contractor and dealing directly with subcontractors, industry observers said. "It enables MGM to beat down smaller-sized, cash-strapped companies and pay pennies on the dollar," said one construction expert who requested anonymity. "The option is to face endless and costly litigation, with no promise of additional compensation in the future. Unfortunately, this 'divide-and-conquer' approach has become a common close-out model on large-sized projects."
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MGM Mirage gains greater negotiating leverage by bypassing its general contractor and dealing directly with subcontractors, industry observers said. "It enables MGM to beat down smaller-sized, cash-strapped companies and pay pennies on the dollar," said one construction expert who requested anonymity. "The option is to face endless and costly litigation, with no promise of additional compensation in the future. Unfortunately, this 'divide-and-conquer' approach has become a common close-out model on large-sized projects."
For more, see lasvegasbusinesspress.
