Perini Sues MGM Mirage Over CityCenter Hotel-Casino Project in Las Vegas
CityCenter, the country’s largest private development, is being sued by Perini Building Co., a unit of Tutor Perini Corp., Sylmar, Calif., over work disputes on the $8.5-billion, 18 million-sq-ft Las Vegas Strip complex of hotels, homes and entertainment. On March 25, Perini filed a lawsuit in Clark County Eighth Judicial District Court against several entities controlled by property owners—MGM Mirage Inc. and Infinity World Development Corp., both units of Dubai World, the investment arm of the Persian Gulf state—seeking $490 million for unpaid construction work on the hotel-casino.
The 13-page complaint says the construction contract grew from $3.5 billion to $6.8 billion as a result of “numerous design changes and substantial project modifications.” MGM/City-Center delivered those changes 132 to 520 days late, the lawsuit says, and continued making changes “well after the agreed-upon dates,” which added another $500 million to the project tab. It cites “tens of thousands of owner changes.” Other allegations include project mismanagement and misrepresentation of project finances.