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State, Feds Reach $458M Agreement on Big DigStaff reports - January 23, 2008
BOSTON - Bechtel/Parsons Brinckerhoff has agreed to pay $407 million to resolve its criminal and civil liabilities in connection with the ceiling collapse in the I-90 Connector Tunnel that killed a motorist nearly two years ago.
The agreement with the Big Dig consultant was announced Wednesday afternoon by Attorney General Martha Coakley and federal officials.
The payment also covers defects in the slurry walls of the Tip O'Neill Tunnel; another 24 section-design consultants that worked on various parts of the massive Central Artery project have agreed to pay an additional $51 million to resolve certain cost recovery issues associated with the Big Dig's design.
"We believe that today's global agreement is the best possible resolution for the commonwealth and for the federal government. This investigation was complex and involved a number of complicated issues, and the collaboration among state and federal agencies in order to reach this outcome is unprecedented," said Coakley. "All the while, we have been ever mindful that Milena Del Valle lost her life on July 10, 2006. Today's landmark agreement with Bechtel/Parsons Brinkerhoff and other contractors allows us to resolve criminal and civil claims, to provide for future repairs, and to ensure the future safety of the Big Dig tunnels."
The majority of the $458 million will be held in a new state Central Artery/Tunnel Project Repair and Maintenance Trust Fund to provide for future non-routine repairs and maintenance of the Big Dig. It is anticipated that future recoveries from Big Dig contractors will also be deposited into this fund. Special state legislation was signed into law this month establishing the fund. Including payments from a plea agreement with Aggregate Industries last summer, total recoveries related to the Big Dig now exceeds $500 million.
The cost to build the highway the runs under central Boston was $14.6 billion.
The investigation that led to the agreement began after a breach was discovered in a slurry wall panel in the I-93 mainline tunnel in September 2004. The U.S. attorney's office established a Big Dig Task Force that has been largely staffed by investigators employed by the U.S. Department of Transportation, Office of Inspector General, the Federal Bureau of Investigation, the Massachusetts State Police, and by prosecutors employed by the state attorney general's office and the U.S. attorney's office. In February 2005, the office of then Attorney General Thomas F. Reilly assumed responsibility for cost-recovery efforts related to Big Dig and, after the 2006 tunnel ceiling collapse, began a criminal investigation of that fatal incident.
The Coakley's office since has worked closely with the Big Dig Task Force to reach the agreement with Bechtel/Parsons Brinckerhoff.
The agreement:
- Retains the right of the federal and state governments to sue Bechtel/Parsons Brinckerhoff for damages if the Big Dig suffers another catastrophic event within 10 years.
- Requires the company to develop coporate compliance guidelines, review its internal quality assurance programs and conduct an internal investigation related to the ceiling collapse, and report those findings to the federal government.
Bechtel/Parsons Brinckerhoff acknowledges:
- There were serious failures in its obligations to manage construction of the I-93 slurry walls.
- There were certain failures regarding its oversight responsibilities concerning the construction of the ceiling in the portal area of the I-90 Connector Tunnel, such as failing to investigate or correct the fact that the epoxy bolts holding up the massive concrete ceiling tiles were "creeping out of the roof."
- That it failed to adequately fulfill its construction management obligations relating to contract modifications, which led to overpayment to subcontractors.
- That its failure to meet its oversight obligations with respect to the delivery and use of non-specification in concrete in Big Dig structures, including the slurry wall.
For the complete documents, click here.
"I commend the attorney general for reaching this settlement on behalf of the people of the commonwealth," said Gov. Deval Patrick in a statement. "The settlement provides funds to repair and maintain the Big Dig highways and tunnels, and to conduct what I expect will be the most robust and comprehensive inspection and testing program in the country. These contractors owe us nothing less."
Coakley announced the agreement in conjunction with U.S. Attorney Michael J. Sullivan; Theodore L. Doherty III, special agent-in-charge of the New England Regional Office of the U.S. Department of Transportation, Office of Inspector General; Warren T. Bamford, special agent-in-charge of the FBI's New England Field Division, and Col. Mark Delaney, superintendent of the state police. |
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