Bechtel/Parsons Brinckerhoff (PB), the joint management consultant consortium that oversaw design and construction on Boston's Central Artery/Tunnel (CA/T) project (Big Dig) has agreed to pay USD407.1 million (USD357.1 million by Bechtel and USD50 million by PB) to resolve civil and criminal liabilities in connection with the deadly ceiling collapse in the Interstate 90 tunnel and other defects in the project.
The agreement also calls for an additional USD51.1 million to cover costs of other construction flaws. This sum will be paid collectively by 24 other design contractors (USD11.1 million) who worked on the project and their insurers (USD40 million from owner-controlled programme), bringing the total recovery to USD458.2 million. Visit www.mass.gov/Cago/docs/press/2008_01_23_settlement_funds_chart.pdf to see the actual breakdown between the payers and the recipients. Noticeably missing from the settlement is construction contractor Modern Continental and designer Gannett Fleming. A civil lawsuit is still pending against both companies.
Under the settlement, Bechtel/PB will not face criminal charges in the fatal I-90 connector eastbound tunnel ceiling collapse. Milena Del Valle, 39, a native of Costa Rica residing in Boston, was crushed by 26 tonnes of concrete in July 2006 as she and her husband drove in that tunnel leading to the Ted Williams tunnel, on their way to Logan International airport. Visit www.bechtel.com and
www.pbworld.com
Prosecutors had enough evidence to bring criminal charges but decided not to charge the consortium after Bechtel officials said they were willing to negotiate a civil settlement. John MacDonald, chairman of Bechtel/PB, said that the settlement "is in the best interests of all concerned" and that the consortium regretted Del Valle's death. In the agreement, the joint firm acknowledges serious failures in its management of the major construction project.
But the agreement does incorporate a statement of facts detailing the basis for liability by Bechtel/PB, which was paid more than USD2 billion to manage the project for more than 20 years, in four different areas.
First, Bechtel/PB has acknowledged serious failures in its obligations to manage construction of the I-93 slurry walls. Particularly, Bechtel/PB allowed construction contractors, such as Modern Continental, to place concrete for the slurry walls when construction specifications had not been met. Bechtel/PB failed to complete the required documentation noting these construction deficiencies and failed to have the deficiencies corrected.
Second, Bechtel/PB has acknowledged certain failures regarding its oversight responsibilities concerning the construction of the ceiling in the portal area of the I-90 connector tunnel. Bechtel/PB observed epoxy bolts that were failing to withstand the load of the ceiling panels and were creeping out of the roof, but failed to adequately investigate the cause of such failures or to correct the problem.
Third, Bechtel/PB also acknowledges its failure to adequately fulfil its construction management obligations relating to contract modifications. Particularly, Bechtel/PB failed to assure the accuracy of contractors' records on time and material slips thereby resulting in overpayments to be made to contractors who misrepresented the classification of apprentice workers as journeymen who were paid at higher rates.
Fourth, Bechtel/PB has acknowledged its failure to meet its oversight obligations with respect to the delivery and use of non-specification in concrete Big Dig structures including the I-93 mainline tunnel slurry walls by Aggregate Industries Northeast Region. Visit www.mass.gov/Cago/docs/press/2008_01_23_bigdig_one_page_summary.pdf
Bechtel/PB is not barred by the settlement from obtaining future government contracts. In addition, the settlement does not have a direct effect on a separate lawsuit filed by Del Valle's family. Powers Fasteners, the only company that has been criminally charged in the tunnel collapse, also is the only company that has settled with the Del Valle family. Click here .
The deal does not necessarily end the government's recovery efforts. If a future catastrophic event relating to the Big Dig causes more than USD50 million in damages, the federal and state governments retain the right to sue Bechtel and PB. Damages are capped at USD100 million per event, and an arbitrator would decide whether the consortium was to blame. For the next 10 years (through October 2017), Bechtel and PB waive their right to statute of limitations and other time-based procedural defenses to a catastrophic event claim.
The majority of the total USD458.2 million will be held in a new state Big Dig repair and maintenance trust fund to provide for future non-routine repairs and maintenance. Any future recoveries from Big Dig contractors will also be deposited into this fund. The agreement brings the total payments for cost recoveries related to the Big Dig to more than USD500 million.
The USD14.8 billion Big Dig, which had an initial price tag of USD2 billion in 1982, was plagued by problems and cost overruns throughout the two decades it took to design and build. The Big Dig is the most expensive public works project in US history and is recognised as one of the biggest and most complex engineering undertakings in modern times. Read E-News Weekly 33/2007, 1/2007, 49/2006, 34/2005, 51/2004, 41/2004, 2/2004, 47/2003 & 17/2003. Visit www.masspike.com/bigdig/index.html 05/08.
Emergency crews remove the crushed car at the scene of the partial collapse of the I-90 east extension tunnel in July 2006
