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FOLLOW-UP

Auditor reviewing Big Dig contracts

Overruns on 5 pacts seen more than $500m

By Raphael Lewis, Globe Staff , 2/18/2003

   
 THE SERIES

PART ONE
Bechtel's mistakes drive up cost overruns, and company profits.

Graphics
Bechtel's fee overruns
Map of major conflicts
History of the contract
Contract modifications
Cross section of roadway
Construction cost overruns


PART TWO
State officials overlook and excuse Bechtel's mistakes for a decade.

Graphic
Cost recoveries initiated


PART THREE
Powerfull allies help protect Bechtel and its bottom line.

 FOLLOW-UPS

This series has generated strong response from the state, the public, and Globe columnists.
More Globe coverage

 GLOBE DEFENSE OF SERIES

On Feb. 20, 2003, Bechtel/Parsons Brinckerhoff issued a document disputing the findings of the "Easy Pass" series. Globe editor Martin Baron responded with a defense of the Globe's reporting.
Read Bechtel's statement
Read the Globe's statement

 PHOTO GALLERY

Building a reputation
Bechtel has never shied away from big construction projects, but worldwide achievements are accompanied by controversy.
See past Bechtel projects

 FROM THE ARCHIVES

2001
Review cites flaws at Big Dig
Cerasoli charges Big Dig coverup
$1.4b overrun known in '99
Firm rejects call to offset costs
'99 memos warned of tunnel leaks

2002
Officials disclose more defects
Lawsuit raises Big Dig questions
State to reopen deal with Bechtel
Big Dig hires quality manager
US knew of hidden expenses
Big Dig overrun just plain big
SEC probers to target Big Dig
Big Dig review to target overruns
Turnpike, firm set deal on leak cost

2003
Contracts to be reviewed

 RELATED LINKS

Central Artery/Tunnel Project
www.bigdig.com

Bechtel
www.bechtel.com

Parsons Brinckerhoff
www.pbworld.com

State Inspector General reports
On the history of the Central Artery/Tunnel project's finances:
www.state.ma.us/ig/publ/cat01ex.htm
On the Central Artery/Tunnel project's attempts to recover money for mistakes:
www.state.ma.us/ig/publ/catcrex.htm

About "Scheme Z" bridge design
libraries.mit.edu/rotch/artery/

State oversight of the Big Dig
www.state.ma.us/catocc/

Mass. Turnpike Authority
www.massturnpike.com

The Artery Business Committee
www.arterybusiness.com

 ONLINE CHAT

On February 11, 2003, Globe reporter Raphael Lewis chatted with Boston.com readers about the Bechtel series.
Transcript of chat

 CONTACT THE GLOBE

Any tips? Let us know.
Phone: 617-929-3379
E-mail: bigdigtips@globe.com

 MORE BOSTON.COM COVERAGE


Beyond the Big Dig   What happens to the ribbon of land being created by the depression of the Central Artery? A joint effort between The Boston Globe, MIT, and WCVB-TV explores.
A special report


Progress updates on the Big Dig. Info
 


State Auditor A. Joseph De Nucci has begun an intensive review of five major Big Dig contracts that together have had overruns of more than $500 million, officials said.

The review comes as state lawmakers and the Massachusetts Turnpike Authority press forward with their most aggressive attempts yet to recoup money lost to management and design errors that contributed to $1.6 billion in overruns.

Glenn Briere, a DeNucci spokesman, said the goal of the review is to pinpoint errors and other wasteful spending for state lawyers to pursue for cost recovery.

"We've done 17 audits down there, and in 16 of them we found something," Briere said. "There's been $600 million in waste just in the contracts we've looked at, so we're pretty confident that we'll find more."

Last week, state Inspector General Gregory W. Sullivan issued a report that accused the Big Dig's private-sector managers, Bechtel/Parsons Brinckerhoff, of making a $65 million error on one small area of the project alone.

The report followed a series in the Globe that detailed more than $1 billion in construction cost overruns tied to errors or poor decisions made by Bechtel. The investigation found that state officials have rarely targeted Bechtel for its mistakes, and have yet to recoup any money for losses.

Company officials have defended their management of the Big Dig, saying they have never failed to meet their contractual standards. Bechtel officials also say they have actually saved taxpayers more than $1 billion by shortening the Big Dig's schedule by more than a year.

But state lawmakers apparently feel otherwise. Last week, Governor Mitt Romney pledged to sign legislation that would give the state much more time to file claims against Bechtel for mistakes made on the Big Dig. Current laws allow for just six years after the error is discovered to file a lawsuit. The measure that passed the Senate, 38-0, last week would give lawyers 10 more years after the Big Dig ends in 2005 to pursue cost-recovery claims.

Romney has summoned Bechtel Group's chief operating officer, Adrian Zaccaria, to a meeting this week to explain the company's record on the Big Dig. A Romney spokeswoman said they are still finalizing the date of that meeting. Romney has also pledged to hire an independent engineering firm to scrutinize Big Dig overruns for potential cost recovery.

But DeNucci's office said his review is already underway and will target some of the biggest and most problem-plagued contracts on the Big Dig. One, highlighted in the Globe series, included designs that failed to include the FleetCenter. Cost overruns have topped $128 million on that job.

DeNucci's office will also scrutinize the contract for the Big Dig's electronic security and observation system. That one is expected to double in size from roughly $100 million at bid time to about $200 million when finished.

Alison Mills, a spokeswoman for US Representative Michael E. Capuano, Democrat of Somerville, said he will meet this week with the US Department of Transportation's inspector general's staff to discuss an investigation into the causes of the Big Dig's cost overruns.

Raphael Lewis can be reached at rlewis@globe.com. Sean P. Murphy's e-mail address is smurph@globe.com.

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