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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Bechtel Corporation
Construction Mismanagement on the Boston Central Artery/ Tunnel Project
Date: 01/23/2008 (Date of Settlement)
Misconduct Type: Government Contract Fraud
Enforcement Agency: Multiple Agencies
Contracting Party: Multiple Agencies
Court Type: Civil
Amount: $357,100,000
Disposition: Settlement
Synopsis: Bechtel/ Parsons Brinckerhoff’s construction work on the Boston Central Artery/ Tunnel Project (aka the "Big Dig") has been the subject of 11 Massachusetts Inspector General investigations over the past several years. The investigations focus on faulty waterproofing, poor design, paving, and many other examples of construction mismanagement that have increased the cost of the project. On November 27, 2006, Attorney General Thomas F. Reilly announced plans to file a civil lawsuit against fifteen companies directly involved in the management, design, construction, and oversight of the Interstate 90 connector tunnel that collapsed and killed a woman in July 2006. The suit alleges negligence, breach of contract and gross negligence on the part of Bechtel/Parsons Brinckerhoff. In a July 2007 report on the Boston Big Dig tunnel ceiling collapse, the National Transportation Safety Board partly blamed the accident on mistakes made by Bechtel/Parsons Brinckerhoff. The NTSB also faulted other builders, suppliers and the Massachusetts Turnpike Authority, finding they should have known that the epoxy glue used to fasten ceiling panel bolts into place could slip over time, and that they should have better monitored the panels after bolts were found slipping out of place in 1999. In January 2008, Bechtel/Parsons Brinckerhoff entered into a global agreement with the United States and the Commonwealth of Massachusetts, agreeing to pay $407 million ($357.1 million of which will come from Bechtel) to resolve all criminal and civil liabilities in connection with the tunnel collapse and other issues pertaining to the project. In addition, Bechtel and Parsons Brinckerhoff will be required to enact corporate ethics and compliance programs designed to prevent similar lapses from occurring on future public construction projects. See related Bechtel Corporation misconduct instance “NTSB Report on July 2006 Big Dig Tunnel Ceiling Collapse.”
Document(s):
- 1. Massachusetts IG Report (March 2005 - Dewey Square)
- 2. Massachusetts IG Report (January 2005)
- 3. Massachusetts IG Report (March 2005 - Waterproofing)
- 4. Attorney General's Office Press Release
- 5. NTSB Press Release
- 6. Settlement Press Release (Mass.)
- 7. Settlement Press Release (DOJ/Mass.)
- 8. Settlement Summary
- 9. Settlement Agreement
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