Lump Sum Agreement (2003)Full Document 

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LUMP SUM AGREEMENT

 

By and Between

 

WYNN LAS VEGAS, LLC,

a Nevada limited liability company

(Owner)

 

and

 

WADSWORTH GOLF CONSTRUCTION COMPANY

a Delaware corporation

 

(Contractor)

 

for

 

a Golf Course to be located at

3131 Las Vegas Boulevard South,

Las Vegas, Nevada


 

1.

  

CONTRACT DOCUMENTS AND GOVERNMENTAL REQUIREMENTS

  

1

    

1.1

  

Agreement Governs

  

1

    

1.2

  

Contract Documents

  

2

    

1.3

  

Compliance with Contract Documents and Governmental Requirements

  

3

2.

  

CONTRACT SUM; METHOD OF PAYMENT

  

3

    

2.1

  

Contract Sum

  

3

    

2.2

  

Contractor Responsible for Expenditures in Excess of Contract Sum

  

4

    

2.3

  

Payment Application.

  

4

    

2.4

  

Progress Payments

  

6

    

2.5

  

Payments by Contractor

  

9

    

2.6

  

Materials Off-Site

  

9

    

2.7

  

Final Payment.

  

10

    

2.8

  

Withholding

  

12

    

2.9

  

Joint Checks

  

12

    

2.10

  

Waiver

  

13

    

2.11

  

Deposits and Payments

  

13

    

2.12

  

Title to Materials

  

13

    

2.13

  

Maintenance of Books and Records

  

14

3.

  

CHANGES IN THE WORK

  

14

    

3.1

  

Change Orders

  

14

    

3.2

  

Construction Change Directive

  

15

    

3.3

  

Surety Waiver

  

16

4.

  

STARTING AND COMPLETION DATE; DELAYS IN THE WORK

  

16

    

4.1

  

Commencement of Work

  

16

    

4.2

  

Completion of the Work

  

17

5.

  

OBLIGATIONS OF CONTRACTOR

  

19

    

5.1

  

Project Staffing

  

19

    

5.2

  

General Supervision of Construction

  

19

    

5.3

  

Site Meetings and Visits by Owner

  

21

    

5.4

  

Independence of Contractor; Taxes

  

22

    

5.5

  

Clean-up and Other Duties

  

22

    

5.6

  

Secure Project/Security/Safety of Personnel

  

23

    

5.7

  

Statement of Claims

  

23

    

5.8

  

Mechanics Liens; Stop Notices

  

23

    

5.9

  

Contractors Familiarity

  

24

    

5.10

  

Record Drawings

  

25

    

5.11

  

Shop Drawings

  

26

    

5.12

  

Subcontractors

  

26

    

5.13

  

Cooperation

  

27

6.

  

RIGHTS OF CONTRACTOR

  

28

    

6.1

  

General Authority and Powers

  

28

    

6.2

  

Selection of Materials; Variation from Plans

  

29

7.

  

RIGHTS OF OWNER

  

29

    

7.1

  

Generally

  

29

    

7.2

  

Partial Occupancy Or Use

  

29

    

7.3

  

Owners Right to Award Separate Contracts

  

30

8.

  

CONTRACTORS DEFAULTS AND OWNERS REMEDIES

  

30

    

8.1

  

Contractors Defaults

  

30


    

8.2

  

Owners Remedies

  

31

    

8.3

  

Termination for Convenience

  

33

    

8.4

  

Contractors Cooperation Following Termination

  

33

    

8.5

  

Suspensions By Owner

  

33

    

8.6

  

Payment to Contractor Upon Termination for Cause

  

34

    

8.7

  

Cumulative Remedies

  

35

9.

  

CONTRACTORS REMEDIES

  

35

    

9.1

  

Contractors Remedies

  

35

10.

  

INSURANCE

  

36

    

10.1

  

Owner Controlled Insurance Program

  

36

    

10.2

  

Evidence of Coverage

  

37

    

10.3

  

Deductibles

  

37

    

10.4

  

Cooperation by the Parties

  

37

    

10.5

  

Duration

  

37

11.

  

INDEMNIFICATION

  

38

    

11.1

  

Indemnity

  

38

    

11.2

  

Survival of Indemnification Provisions

  

39

12.

  

WARRANTY OBLIGATIONS

  

39

    

12.1

  

Contractors Warranty

  

39

    

12.2

  

Contractors Warranty Period

  

40

    

12.3

  

Compliance With Contract Documents

  

40

    

12.4

  

Warranty Costs

  

40

    

12.5

  

Timeliness of Corrective Services

  

41

    

12.6

  

Warranty Survival

  

41

    

12.7

  

Owners Right To Correct

  

41

    

12.8

  

Owners Right to Supplement Work of Contractor

  

41

    

12.9

  

Acceptance of Non-Conforming Work

  

42

    

12.10

  

Warranty Exclusions

  

42

    

12.11

  

Written Guaranty

  

42

13.

  

DEFINITIONS

  

42

    

13.1

  

Change in the Work

  

42

    

13.2

  

Material Change in the Work

  

42

    

13.3

  

Change Order

  

43

    

13.4

  

Change Proposal

  

43

    

13.5

  

Construction Change Directive

  

43

    

13.6

  

Cost of the Work

  

43

    

13.7

  

Delays in the Work

  

47

    

13.8

  

Excusable Delays

  

47

    

13.9

  

Governmental Requirements

  

47

    

13.10

  

Substantial Completion of the Work

  

47

    

13.11

  

Subcontractor

  

48

    

13.12

  

Vendor

  

48

    

13.13

  

Work

  

48

14.

  

OWNERS LENDERS

  

48

    

14.1

  

Owners Lenders

  

48

    

14.2

  

Payments

  

48

    

14.3

  

Audit Rights

  

49

    

14.4

  

Access

  

49

    

14.5

  

Material Changes

  

49

    

14.6

  

General Cooperation

  

49

 

2


15.

 

MISCELLANEOUS PROVISIONS

  

49

   

15.1

  

Subordination

  

49

   

15.2

  

Time is of the Essence

  

50

   

15.3

  

Entire Agreement; Modification; Waiver

  

50

   

15.4

  

Headings

  

50

   

15.5

  

Assignment; Successors to be Bound

  

50

   

15.6

  

Intent of Parties

  

51

   

15.7

  

Governing Law

  

51

   

15.8

  

Survival

  

51

   

15.9

  

Counterparts

  

51

   

15.10

  

Unenforceability of this Agreement

  

51

   

15.11

  

Dispute Resolution

  

52

   

15.12

  

Notices

  

52

   

15.13

  

Confidentiality

  

53

   

15.14

  

Legal Fees

  

54

   

15.15

  

Third-Party Beneficiaries

  

54

   

15.16

  

Statute Of Limitations

  

54

 

 

 

3


 

LUMP SUM AGREEMENT

 

THIS LUMP SUM AGREEMENT (the Agreement) is made effective as of February 18, 2003 (the Effective Date), by and between WYNN LAS VEGAS, LLC, a Nevada limited liability company (Owner), and WADSWORTH GOLF CONSTRUCTION COMPANY, a Delaware corporation, holding Nevada State Contractors License No. 0021977 (Contractor), with respect to the following facts:

 

RECITALS

 

A. Owner owns the real property commonly known as 3131 Las Vegas Boulevard South, Las Vegas, Nevada, as more particularly described on Exhibit A attached hereto (the Property).

 

B. Owner plans to construct on the Property a first class luxury resort and casino, including high-rise hotel space and low-rise space comprised of casino and gaming areas, restaurants, retail, convention and meeting areas, a showroom, parking structure, clubhouse and exterior features (the Casino Improvements). Owner will be retaining separate architects, contractors and consultants (Other Builders) to design and construct the Casino Improvements on the Property.

 

C. In addition to the Casino Improvements, Owner desires to have constructed on a portion of the Property a championship golf course, consisting of 18 golf holes, a driving range, practice putting green, lake and stream features including a signature waterfall, turf grass conforming to USGA standards, landscaping and irrigation (collectively, the Project), and desires to engage Contractor to construct, and supervise the construction of, the Project, in full accordance with the Contract Documents (as defined in Section 1.2 of this Agreement), including the Plans and Specifications (as defined in Section 1.2.2 of this Agreement), and Contractor desires to accept such engagement, upon the terms and conditions contained in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Owner and Contractor hereby adopt and incorporate the foregoing Recitals and agree as follows:

 

  1.   CONTRACT DOCUMENTS AND GOVERNMENTAL

REQUIREMENTS.

 

1.1 Agreement Governs. The intent of the Contract Documents is to include all items appropriate or necessary for the proper execution and Completion of the Work (as defined in Section 2.7.2 of this Agreement) by Contractor to Owners satisfaction. The Contract Documents are complementary, and what is required by one shall be as binding as if required by all. Nothing contained in this Section 1.1 shall relieve Contractor of its obligations under this Agreement, including, without limitation, under Section 5.9 of this Agreement, or shall create a contractual or professional relationship between Owner and

 

1


any person or entity other than Contractor. If any provision of the Contract Documents conflicts with any other provision of the Contract Documents, the provision requiring the highest degree of care or performance or the highest quality of materials, as the case may be, shall prevail, unless Contractor is otherwise instructed in writing by Owner. When only one product and manufacturer is specified, this is the basis of the Contract (as defined in Section 1.2.9 of this Agreement), unless substitution or exception is approved in writing by Owner.

 

1.2 Contract Documents. The Contract Documents consist of the following documents:

 

1.2.1 This Agreement, including any exhibits and appendices thereto.

 

1.2.2 The Plans and Specifications as approved by Owner and Owners Lenders (as defined in Section 14.1 of this Agreement), including, without limitation, all architectural, structural, civil, mechanical, plumbing, electrical, grading utility security and low voltage drawings and specifications, and all supplements, amendments and modifications thereto as approved by Owner and Owners Lenders.

 

1.2.3 The Project Drawings and References as defined by Exhibit B attached hereto.

 

1.2.4 The Project Construction Schedule (as defined in Section 4.2.1 of this Agreement), and attached hereto as Exhibit C.

 

1.2.5 Any Submittals as defined in Section 5.11 of this Agreement.

 

1.2.6 The Schedule of Values (as defined in Section 2.3.3 of this Agreement).

 

1.2.7 The Technical Studies and Reports (as defined in Section 1.3.1 of this Agreement).

 

1.2.8 The Permits and Entitlements as set forth on Exhibit D attached hereto.

 

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