CityCenter Project proceeds but still has problems-letter to Las Vegas Sun

This is in response to to the outstanding news that the CityCenter project
will proceed. All along this has been a two layered drama. The first level was
whether the project would survive in the short run based on cash limitations of
the Joint Venture’s partners,MGMMIrage and Dubai World. Notwithstanding a Dubai
World law suit against MGMMirage for reasons of alleged contract breach and
financial insufficiency, MGMMirage stepped up to the plate and made the required
cash contributions for both parties, and entered into constructive negotiations
with Dubai World and MGMMirage lenders for the purpose of holding together the
project so it could be completed. In so doing MGMMirage, not only has managed to
hold the project together,but in the process has saved thousands of construction
workers’ jobs for the time being, and the jobs of thousands more people needed
to operate CityCenter after it is completed starting later this year.
The second level of drama relates to the numerous construction process
flaws that continue to plague the CityCenter project. While the construction
process has been fast tracked for speed, this has resulted in numerous
construction defects, the most notable being at the Harmon Building where 15 of
the first 22 floors, or approximately one half of the building, were constructed
with faulty rebar installations, before the defects were even discovered. This
led to the decision to eliminate the top half of the Harmon Building which was
to be one of the outstanding architectural features of the CityCenter project.
Based on recent investigations and reviews of construction for the entire
CityCenter project, this fast track construction project has resulted in a
significant backlog of noncomplying construction deficiencies that must still be
remedied. This condition resulted from the pace of work proceeding much more
rapidly than is consistent with normal and accepted construction practices in
the industry. Inspections and corrections appear not to have kept pace with the
rapid progress of the CityCenter project’s construction.

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