Changing market conditions in Las Vegas have prompted MGM Mirage, owner of the $9.2-billion CityCenter mixed-use development, to transfer a chunk of its interiors work from project general contractor Perini Corp. to Tishman Construction Corp., Nevada, its executive construction manager. Tishman had been CM on the city’s $4.8-billion, 12-millionsq-ft Echelon project, halted in August because of financial problems.

Photo: MGM Mirage

Contractor changes could affect the project’s schedule.

“[We] have been working together to determine how best to take advantage of the recent downturn in the construction community to the benefit of the project,” says MGM Mirage spokesman Alan Feldman. He would not quantify in dollars or volume the exact amount of interiors work Tishman will assume on the 19-million-sq-ft project, but the CM “will finish interiors at Mandarin, Veer and some suites at Aria,” says Feldman.

“We had previously indicated that Tishman would finish interiors at Harmon. Perini continues in its role on all remaining aspects of the project.”

On Echelon, Tishman had geared up for a workload of seven buildings on 87 acres. Work was under way for a year when it was halted by owner Boyd Gaming, with Tishman seeking a larger role in CityCenter. “MGM Mirage asked us to add management staff for the final [City-Center] push,” says Daniel McQuade, Tishman Nevada president. “The timing happened to work out. Many Echelon staff could be easily transferred to CityCenter.”

CityCenter’s workforce totaled 9,500 at peak construction. Officials say it is the largest privately financed project in U.S. history and is set to open in December 2009.

“Tishman has been getting more involved since Echelon was put on hold,” says Shelton Grantham, Perini vice president. “They’re overstaffed. So we’ve been turning work back to the owner and [Tishman] has been doing it.” The change means several subcontractors will receive stop-work notices from Perini and may have to rebid for Tishman, which could expand the bidding pool but delay completion of the fast-track project, observers say.