Photos courtesy of HRP Group and the Boston Planning & Development Agency
A subcontractor that performed asbestos removal work during demolition of the former Boston Edison power plant is seeking financial damages from construction giant Suffolk.
After signing a contract in January 2022, Everett-based NorthStar Contracting Group encountered unexpected materials containing asbestos during demolition of the power plant. The additional work increased the cost of the project by over $22.5 million, according to a complaint filed in Suffolk Superior Court.
“Although Suffolk originally approved change order to pay NorthStar for the costs arising from the extra work to abatement the hidden and undisclosed [asbestos-containing materials], Suffolk changed its position and then improperly refused to pay NorthStar for the extra work and costs incurred,” the complaint, submitted by attorney Samuel Starr of Boston-based Mintz states.
Property owner HRP Group hired Boston-based TRC Environmental Corp. to survey asbestos in 2020, and signed a $55.9 million contract with Suffolk in December 2021 to demolish six power plant buildings along with ancillary structures, the complaint states. Suffolk subsequently signed a $40 million contract with NorthStar for asbestos abatement.
In November 2021, contractors submitted a “non-traditional work plan” to the Massachusetts Department of Environmental Protection in which abatement would take place in phases prior to demolition, according to the lawsuit.
In 2022, NorthStar discovered “hidden and undisclosed asbestos” in the Building 3 Turbine Hall, prompting it to revise the work plan and execute a change order. The company received $386,224 for additional removal work.
But in March 2023, construction was halted after additional asbestos was discovered during removal of the Building 3 slab.
Suffolk initially approved change orders to pay for the extra costs, but changed its position, the complaint states. Suffolk paid NorthStar $39.3 million but has refused to pay the current balance of nearly $22.6 million, NorthStar alleges.
The lawsuit, filed last week in Suffolk Superior Court, alleged breach of contract. It names Suffolk, Liberty Mutual Insurance Co., Fidelity and Deposit Company of Maryland and Federal Insurance Company of Indiana as defendants.
Suffolk did not respond to a request for comment.
Three workers were injured during the demolition project in 2022 when a cantilevered walkway collapsed in one of the buildings. The Occupational Safety and Health Administration cited NorthStar and Suffolk for alleged workplace safety violations.
Hilco Redevelopment Partners, now known as HRP Group, acquired the 15-acre former power station property in 2016. In 2021, the Boston Planning & Development Agency approved a 1.7 million square-foot redevelopment project including offices, labs, a hotel, retail space and up to 636 housing units.
After approval, HRP demolished 1.25 million square feet of buildings, removing 17 million bricks and 63 million pounds of concrete from the site, according to a public presentation last year.
Because of the slump in commercial leasing, HRP now is seeking approval to begin the first phase with construction with a pair of apartment buildings.
