Wynn Palace resort is behind schedule and CIMIC Group Ltd, a subsidiary of Leighton Contractors, could accumulate US$200 million in penalties if the project experiences further delays.
Hong Kong.- Yesterday (Wednesday) Wynn Ltd. announced to the Hong Kong Stock Exchange, that it had issued a letter to CIMIC subsidiary Leighton Contractors (Asia) Ltd stressing the importance of meeting Wynn Palace’s opening date on June 25th, although Wynn Resorts’ spokesman, Michael Weaver, said the company is not announcing any delay yet.
“Your liability for payment of delay damages up to the end of January 2016 is likely to amount to an additional US$6.2 million,” stated Wynn. “Your total aggregate potential liability under the Contract for delay damages is US$200,000,000.”
In 2013, CIMIC landed the US$2.5 billion contract to build Wynn Palace resort in Macau, but then in November, Leighton notified it wouldn’t be able to complete the resort on March 25, postponing the opening to June 25, 2016.