Bondholders sue MBTA for more than $8 million over delayed Wollaston project

Patriot Ledger, The (Quincy, MA)

QUINCY - Two insurance companies that issued more than $100 million in bonds to cover the cost of renovating the MBTA's Wollaston station are suing the agency for between $8 million and $9 million over delays and changes to the project.

The insurance companies are alleging the MBTA breached their contract, among other issues, by continuously changing what the project would entail, which ran up costs.

"(The) 'design-as-you-go' approach, over time, resulted in a scope of work materially different than the work scope originally solicited by the MBTA and was inconsistent with the contract," the insurance companies alleged in a complaint filed in Suffolk County Superior Court.

The insurance companies - Zurich American Insurance Co. and its subsidiary, Fidelity and Deposit Co. of Maryland - eventually took the project over because of cost overruns.

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The MBTA first put the project out to bid in 2017. The T wanted to overhaul the Wollaston station to improve it and make it wheelchair accessible. It was the only Red Line station that wasn't wheelchair accessible at the time.

The more than $67 million construction contract went to LMH-C.M.C. di Ravenna Joint Venture. The contract was later reduced to $53 million after project changes. The complaint alleged that di Ravenna had to issue nearly 400 change orders to try to recoup money for alterations to the plan.

The bondholders, who were financially responsible for timely project completion, took the project over in 2019. The insurance companies said the MBTA "actively interfered" with their ability to complete project milestones through July 2020.

The station was closed for renovations for more than 20 months, from January 2018 to August 2019.

The station transformation included three new elevators, two new escalators, two more stairways, accessible bathrooms and additional customer paths into the station allowing for better connection from the parking lot to Newport Avenue.

Lawyers for the insurance companies declined to comment. In a statement, the MBTA said it "prefers not to comment on unresolved matters of litigation."

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Joe Difazio can be reached at [email protected]. Follow him on Twitter @jldifazio.