Gary Barnett and Extell Development have been sued for $27 million by contractor Five Star Electric Corp., which claims non-payment for work done on the developer's ultra-luxe tower One57. The Real Deal reports that Five Star signed a contract with Extell in 2010back when the planned building was still the 67-story Carnegie Towerthrough its management company Lend Lease, and the lawsuit claims that Extell's poor management delayed and disrupted Five Star's work, resulting in "substantially increased costs."
Five Star alleges that Extell's inability to "provide an adequate and complete design" for the tower, along with the developer's "failure to properly manage the work and failure to process change orders," led to constant disruption that made the work cost 124 percent more than the original contract price, which is not disclosed in the lawsuit. This is not the first legal action Extell has faced regarding One57. A neighboring building sued over evacuations relating to the crane that collapsed during Hurricane Sandy, and the widow of a Five Star electrician who died at the site filed a wrongful death suit against Extell last year.
· Extell hit with $27M suit over One57 [TRD]
· All One57 coverage [Curbed]