When building a megamansion goes wayyy over budget

Contractor Lendlease wrapped up in legal dispute over LA home

Los Angeles /
Apr.April 01, 2018 08:47 AM
(Credit from back: Pixabay, Images Money/Flickr)

Be careful what you wish for — and who you hire to build a dream house.

Ziad Ghandour hired Lendlease, a commercial builder inexperienced in building luxury homes, because, he says, convinced him that the 35,500-square-foot home he was building would be more like a commercial project. But then his house was completed three years late, ran $7 million over-budget and problems from leaks to air filtration to the installation of stucco remain, according to the New York Times.

Ghandour described the construction process as “devastating” for his family and himself, and, according to construction litigation lawyer Jason Kellogg, he’s not an outlier. As megamansion construction is booming, new builders without luxury-homebuilding experience are trying to enter the market with disastrous results.

Ghandour said Lendlease told him that his Los Angeles mansion would be their first luxury home and, as a result, would get special attention. Some of the builder’s most recognizable previous projects include the National September 11 Memorial & Museum at World Trade Center and Australia’s Sydney Opera House.

“What I was hoping for them from the beginning was that they’d just do a good job. And if they didn’t do that, then they’d fix whatever wasn’t done right,” Ghandour told the Times. But, instead, “the meter is still running.” The total bill to date for the mansion is $20 million.

Ghandour initiated a legal claim against Lendlease in 2016 and the case is now in binding arbitration. [NYT]Erin Hudson


Related Articles

arrow_forward_ios
26 city-owned parcels ID’d as potential sites for LA homeless shelters
(LA Office of the Controller)
Controller points to 26 city-owned parcels for homeless shelters
Controller points to 26 city-owned parcels for homeless shelters
CenterPoint CEO Bob Chapman and an aerial of the property (Google Maps)
CenterPoint continues SoCal spree in Signal Hill
CenterPoint continues SoCal spree in Signal Hill
Photo Illustration of Elon Musk (Getty)
Musk could save $2B in California taxes on Texas move
Musk could save $2B in California taxes on Texas move
(iStock)
LA is nation’s second least affordable housing market: report
LA is nation’s second least affordable housing market: report
The lawsuit alleges that the property manager was a serial sexual harasser, frequently making unwelcome advances and surprise visits to female tenants’ homes and offering rent discounts in exchange for sex (DOJ, Getty)
Feds settle sexual harassment case with LA property manager, owner
Feds settle sexual harassment case with LA property manager, owner
Shark Tank’s Robert Herjavec flips Hidden Hills mansion for $17M
“Shark Tank” star Robert Herjavec flips Hidden Hills mansion for $17M
“Shark Tank” star Robert Herjavec flips Hidden Hills mansion for $17M
UCLA, USC survey: LA renters owe $3B in back rent
UCLA, USC survey: LA renters owe $3B in back rent
UCLA, USC survey: LA renters owe $3B in back rent
Sandstone Properties CEO Eri Kroh with a rendering of the project (Sandstone, The Jeff Hotel)
Culver City approves `The Jeff,’ Sandstone Properties’ 175-unit hotel
Culver City approves `The Jeff,’ Sandstone Properties’ 175-unit hotel
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...