LAS VEGAS (CN) – A company hired by the troubled Fontainebleau Las Vegas high-rise construction project on the Strip claims it was fired after discovering $40 million in overpayments due to Fountainebleau’s “fraudulent billing practices and inappropriate payment methods.” CCCS International also claims it was stiffed on its promised 2 percent commission and other fees.
In its federal complaint, CCCS claims it was contacted by developers of the $3.1 billion project last summer because the project “was severely over budget and Fontainebleau was in need of a construction manager” to recover prior over-payments.
Both parties projected CCCS could save Fontainebleau $130 million, and CCCS was to get 2 percent of any discovery of prior overpayments or potential overpayments, according to the complaint.
CCCS claims it discovered the $40 million in overpayments in the few months it was on site, and says it was “well on its way” to discovering the benchmark of $130 million when the contract was unfairly terminated.
It’s the latest in a string of legal battles for the 24-acre mega-resort on the Las Vegas Strip. In April, developers accused 11 banks of refusing to fork over their promised $800 million to finish the job.
As Fontainebleau predicted in its April lawsuit, construction of the project has slowed since the funding was pulled, and many construction workers have been laid off.
The resort, with 3,815 hotel and condominium units, is expected to create 8,000 jobs in the Las Vegas Valley when completed late this year.
CCCS is represented by William Urga with Jolley Urga.