Potential late penalties for Wynn Palace contractor

Another delay in the construction of the Wynn Palace could lead the casino resort’s contractor accruing significant financial penalties.
Last month, Leighton, the contractor signed to develop the Macau project, indicated to Wynn that they would be unable to meet the original March 25 deadline for completion.
“They told us, ‘We’re not going to make the 25th [of March],’ because they [Leighton] have hit some complications in installation,” said Steve Wynn.
The notification prompted Wynn to revise the completion date to June 25. The delay could prove disastrous for contractor Leighton, which has financial incentives to meet various deadlines.
The company has already relinquished a bonus of USD38 million for the timely completion of the resort on March 25, the Las Vegas Sun reported.
Now, aside from the completion deadline, Leighton must also meet several other construction benchmarks over the course of this and next month, or they will risk paying penalties.
According to the Las Vegas Sun, Wynn said that a failure to complete the first five floors by Christmas Eve will result in a penalty of USD200,000 per day, while a failure to complete the first ten floors a month later will incur an additional penalty of the same amount. Staff reporter