Gambling operator Wynn Macau Ltd. said in a Wednesday stock exchange statement that it is concerned the contractor for the company’s second Macau-based casino could miss the June 25 completion deadline. The gambling operator further noted that this may result in the said contractor paying up to $200 million in damages.
Leighton Contractors (Asia) Ltd., subsidiary of Australia-headquartered CIMIC Group Ltd., had been hired as the preferred contractor for the $4.1-billion project. Wynn Palace was initially scheduled to open doors on March 25, 2016. However, Wynn Macau said in November that the resort’s launch would be postponed to June 25 as a result from construction delays.
The operator said in its Wednesday statement, signed by Wynn Resorts founder and CEO Steve Wynn, that it has urged Leighton Contractors “to reinforce the importance” of meeting the June 25 opening. The gambling company further noted that it is concerned that the contractor will not be able to achieve a third interim milestone (the fitting out of floors 10 to 15), given its progress in “the execution of work.”
Following the Wednesday stock exchange filing, Michael Weaver, spokesperson for parent Wynn Resorts, said that they are by no means announcing any delay in the completion of the resort. However, he refused to provide comments on the impacts a potential delay may have. CIMIC spokeswoman Fiona Tyndall refused to comment on the matter.
It seems that Leighton Contractors has previously failed to achieve the first interim construction milestone. In that regard, the amount of $1 million was deducted from its payment application for December 2015.
Last month, Mr. Wynn said that the contractor would be required to pay a daily penalty of $200,000, if the first 5 floors of the 28-story Wynn Palace were not completed and approved by December 24. Leighton Contractors was also warned that it would be imposed a further $200,000 daily penalty, if failing to complete 10 more floors by January 24. Mr. Wynn further pointed out that if the Australian contractor fails to meet the June 25 deadline, it will be liable for a penalty of $1.5 million a day.
Wynn Palace will be Wynn Macau’s second integrated casino resort in the administrative region and first on the Cotai Strip. It will feature 1,700 luxury hotel rooms, a large lake with gondola rides, casino floor, retail and meeting space, and a number of other entertainment and food and beverage options.
