The fact that the Wynn Palace contractor was unable to complete the construction of the US$4.1 billion resort for its originally slated March 25 opening has caused the construction company to lose a bonus of US$38 million (MOP303.34 million). The revelation was made by the CEO of Wynn Resorts, Steve Wynn, on Monday on the sidelines of the launch of his daughters slipper line.
“What has happened is that for the past six months the builder, Leighton, had a 90-day completion bonus of $38 million, Wynn said, as quoted by news website Las Vegas Sun. March 25 was the date. They had been telling us up until two or three weeks ago, Well make it, and they had to tell us in advance so we could start hiring people for the whole run-up to the opening.
“As it happened, 10 days ago they told us, Were not going to make the 25th because they have hit some complications in installation. We had been using March 25 as the date, so I had to make another announcement [of the June 25 opening], the CEO of Wynn Resorts explained.
“If they dont make June 25, its a US$1.5 million-a-day penalty, Wynn revealed. If they dont have the first five floors done by December 24 and we have accepted them, its US$200,000 a day. Then, on January 24, if they dont have the next 10 floors, its US$200,000 a day. They say theyre in good shape but theyre not going to make the early bonus.
Regarding the postponment of the opening date, Wynn explained that the contractor was forced to delay it because of construction problems.
“We werent delayed but I got misled by my builder and not in a mean way, Wynn said. They just bumped into some problems. But the furniture has been ordered and the fountains have been tested.
During the event, Mr. Wynn also revealed that his builders often get “heartburn during his review of the properties because some details are often not to the standard desired by the gaming operator and have to be fixed.
Wynn too tough on Macau Government
In October, during a conference call regarding the results of Wynn Resorts, Steve Wynn complained about the uncertainty over the number of gaming tables that the operator is going to be authorised to operate in the new Cotai resort.
Now, and some months after representatives of the operator was reprimanded in a closed-door meeting with the government, he openly admits that he went too far in his criticism.
“I think, in the long run, the government will do the right thing and be more understanding, Wynn said. They have their way of looking at it, which is not the same way a businessman has of looking at it. Thats true in this country, as well. I was probably a little tougher on them than I should have been on the conference call.
“But look, Ive made promises to the people over there, and its only fair that they help me keep those promises. But it wasnt as serious as everyone made it out to be: Wynn blasts government. I didnt blast anybody. Ive been their fair-haired boy in Macau since Day One. But its OK to complain a little. Its OK to have a different point of view, he said.