Published on October 26th, 2016 | by James Ayre0
Construction Firm AECOM Warned Faraday Future About Unpaid $21 Million Deposit Due In September
October 26th, 2016 by James Ayre
AECOM, the firm constructing Faraday Future’s new North Las Vegas manufacturing facility, issued a warning to the electric vehicle startup on October 10th over an unpaid $21 million deposit that was due in September, according to recent reports.
The warning stated that work could stop on the project if the debt remained unpaid. News of the event originates with a copy of the reported letter obtained by Automotive News.
It’s hard to tell what happened with the late $21 million deposit, as both companies now claim that was paid. Perhaps someone at Faraday Future simply forgot?
Faraday Future and AECOM sent a joint statement on the matter to Automotive News following a query. It reads: “The business relationship between Faraday Future and AECOM is strong and we remain committed to building our factory of the future in North Las Vegas.”
In addition, a Faraday Future spokesperson commented that no work stoppage has or will take place, and that the company was working with AECOM to resolve the issue.
Automotive News provides a bit more background: “In an October 10 letter, Robert Gay, vice president and project executive at AECOM — which is overseeing $500 million of work on the roughly $1 billion, 3 million-square-foot plant — cites an unpaid $21 million deposit, due in September, to an escrow account to cover material costs and subcontractor work. … The letter gives Faraday 10 days to ‘fully fund’ the escrow account with the overdue September payment, or risk a suspension of work until ‘the funding issue is resolved.'”
Notably, the letter from AECOM also included references to projected payments of around $25.3 million for October and $11.8 million for November.
It’s hard to know what to make of the news. Presumably, with the billionaire tech mogul Jia Yueting backing the firm, money is itself not an issue. Or is it?
As some background, work began on the project in July, following an earlier official groundbreaking ceremony in April. To date, most of the construction work has involved the large-scale grading of the enormous (900-acre) project site. Actual foundation and building work isn’t likely to begin until sometime in early 2017.
Faraday Future is reportedly receiving around $215 million in incentives from the state of Nevada in relation to the project.
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