STATE SUES CONSULTANT FOR CENTRAL ARTERY ROLE

The Commonwealth of Massachusetts and the Massachusetts Turnpike Authority have filed suit against Bechtel/Parsons Brinckerhoff seeking damages of up to $146 million in connection with their role as project consultant on Boston's Central Artery/Tunnel project (aka the Big Dig). The suit alleges that Bechtel/Parsons Brinckerhoff underestimated budget costs on the project and neglected to consider other financial ways to complete the $14.6 billion project. Bechtel/Parson Brinckerhoff was hired in 1985 by the Massachusetts Highway Department to manage design, construction, and budget forecasts on the project. Total project costs were estimated at $7.7 billion in 1993, raised to $10.4 billion in 1996, and had reached $14.1 billion by 2000. According to Bechtel/Parsons Brinckerhoff, primary causes for growth within these periods was price indexing for inflation, environmental mitigation, scope growth and traffic maintenance, and additional accounting adjustments. In addition, a 1994 report from Massachusetts Inspector General Robert Cerasoli states that Bechtel/Parsons Brinckerhoff provided the governor and state officials with a $14 billion estimate.