Supplement | HBS Case Collection | January 2009

CityCenter (B): Economics and Delivery

by A. Eugene Kohn, John D. Macomber and Ben Creo

Abstract

Bill Smith is informed by his general contractor that a key component of the Aria Resort is going to be delayed. Aria is the centerpiece of CityCenter: a $9 billion complex and a bet-the-firm decision for MGM Mirage. Smith must make a decision as to whether to force the general contractor to complete construction or to have the MGM Design Group take over this piece of the construction. The case also looks at the economics of the CityCenter project and discusses the organizational underpinnings needed to make a massive construction process a success.

Keywords: Buildings and Facilities; Decision Choices and Conditions; Construction; Finance; Organizational Structure; Projects; Complexity;

Citation:

Kohn, A. Eugene, John D. Macomber, and Ben Creo. "CityCenter (B): Economics and Delivery." Harvard Business School Supplement 209-094, January 2009.