Palace opened in August
A dispute between Steve Wynn and the builder of his lavish new resort on Macau’s Cotai Strip seems to be coming to an amicable end.
The opening of the $4.1 billion Wynn Palace in Macau was delayed several times, once in March and again in June, apparently due to construction snags caused by the contractor, Leighton Contractors Asia. Late last year, when a delay in the planned grand opening became apparent, Leighton forfeited a $38 million completion bonus, and Wynn warned the company it would incur big fines if there were additional holdups.
“I got misled by my builder,” said Wynn at the time. “If they don’t make June 25, it’s a $1.5 million-a-day penalty. If they don’t have the first five floors done by December 24, it’s $200,000 a day. Then, on January 24, if they don’t have the next 10 floors, it’s $200,000 a day.”
The 1,700-room resort finally opened on the Cotai Strip in August, joining a number of other new properties including Galaxy Entertainment’s Phase II and Broadway expansions; Melco Crown Entertainment’s Studio City, which opened in October 2015; and most recently, the Parisian Sands.
Now the billionaire and his builder have agreed to end the bickering, according to GGRAsia. As a result of their discussions, in an October filing by Wynn Macau stated it will “release and pay US$21.1 million to Leighton Asia as money due for work completed”; pay Leighton an additional $199.8 million; and hand over another $55.2 million “upon final completion of works.” Up to $45.0 million will be due “as and when outstanding, defective or nonconforming work is completed to the satisfaction” of Wynn Macau.
Leighton Asia for its part has agreed to “complete all outstanding work necessary to achieve final completion.”
Wynn defended the company’s penalty structure, saying the delay may have cost as much as $200 million for the operator. Leighton countered that the scope of the work changed as the construction progressed. But the parties have agreed not to pursue respective claims and cross-claims pertaining to the matter.
