The stalled $3.1-billion Fontainebleau development on the Las Vegas Strip, which filed for bankruptcy protection in early June, is facing mounting challenges in reaching completion. On July 14, Turnberry West Construction LLC, the project’s general contractor, sued the owner and its lenders in U.S. Bankruptcy Court in Miami on a hefty $675.3-million mechanic’s lien, including 15% interest. Photo: Luetta Callaway/ENR Complex developer-contractor court case is squeezing project subcontractors. The 737-ft-tall, 3.4-million-sq-ft hotel-casino-retail complex, which is about 70% completed, is being built by Fontainebleau Resorts LLC, an investment group led by Miami-based developer Jeffrey Soffer, who also owns Turnberry West Construction.
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.