Encore Boston Harbor subcontractors claim they are owed millions of dollars for work done at the $2.6 billion hotel and casino resort which opened doors this past Sunday, the Boston Herald reports.
The issue has been monitored by the Massachusetts Gaming Commission, which said that it is keeping itself informed about the progress of the discussions between Wynn Resorts, the owner of the luxury property, and Suffolk Construction, the primary contractor for the resort.
Catherine Blue, General Counsel at the Massachusetts’ gambling regulator told the Boston Herald that the commission would “bring any concerns raised to Encore Boston Harbor for their review.”
Coghlin Electrical Contractors, a Worcester-based subcontractor who did work at Wynn Resorts’ new property, said that it is owed $30 million in change orders, that is to say work that has been added to the original scope of work negotiated in the initial contract.
Sue Mailman, owner of Coghlin Electrical Contractors, told the Boston Herald that at one point they were assigned additional work and then more. It “piled up at the end” and her company has not been paid for a lot of the changes that were made to the original contract. She added change orders were sometimes brought up to eight months after work was done.
Commenting on the ongoing dispute between subcontractors and Encore Boston Harbor, Michael McDonagh of the Associated Subcontractors of Massachusetts said that members of the organization have had multiple meetings with Wynn Resorts to discuss issues related to payment and change orders.
Mr. McDonagh told the Boston Herald that change orders happened “far too frequently” and that meant subcontractors had to “pay employees, supplies and carrying costs.” He added that small businesses were affected, ones that “can’t afford to finance the $2.6 billion Wynn project.”
Wynn Resorts Says It Has Met Its Financial Obligations
Even though a number of subcontractors claim they are owed tens of millions of dollars, Wynn Resorts has maintained that it has met all its financial obligations in relation to the Encore Boston Harbor project.
The company said in a statement to the Boston Herald that it has paid all invoices it has been presented with by its primary contractor, Suffolk Construction. The statement read further that “subcontractors work directly with the contractor, not Encore Boston Harbor.”
The luxury hotel and casino resort opened doors along the Mystic River in the City of Everett this past Sunday. Tens of thousands of people flocked to the Greater Boston area to attend the grand opening of Massachusetts’ second casino resort. It is also believed that Encore Boston Harbor is the largest private, single-phase development in the history of Massachusetts.
Commenting on the ongoing dispute, the property’s primary contractor told the Boston Herald that it continues to “work directly with its subcontractors to resolve any outstanding legitimate issues.” A spokesman for Suffolk Construction added that they are optimistic they can “achieve satisfactory conclusions to close out a successful project.”
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