Big Dig, Big Headache: $458 Million Settlement

Boston's troubled Big Dig tunnel connecting the city and its airport chalked up another unwanted milestone today when contractors agreed to pay $458 million to settle allegations of major design and construction flaws.

The settlement did not involve damages for the death of Milena Del Valle, a 38-year-old Boston woman who was killed in July 2006 in the partial collapse of the Central Artery Tunnel, known as the Big Dig, to Logan International Airport. That lawsuit is being handled separately.

In today's settlement, Bechtel Infrastructure Corp. and PB Americas Inc. and some design consultants agreed to pay the half-billion dollars to settle allegations that the companies' joint tunnel construction venture violated state and federal law by failing to adequately manage the huge highway project, and allowed unnecessary cost overruns.

The settlement allows the two companies—which together paid $407 million of the negotiated amount—to avoid criminal charges in connection with Del Valle's death. But it did not block the consortium, known as B/PB, from participating in future government construction projects, but it is still on the financial hook if any Big Dig repairs arise that cost more than $50 million, and involve its conduct during the construction. Its liability would be limited to $100 million, and would be determined by an arbitrator.

The bulk of the settlement monies—$335 million—goes to the state of Massachusetts for future repairs of the tunnel, which moved Interstate 90 below the city of Boston. The $15 billion highway, which began in 1985, took 16 years to build and was beset by delays, leaks, and cost overruns.

Announcing the settlement, Acting Assistant Attorney General Jeffrey S. Bucholtz said that citizens "depend on our nation's contractors to be truthful and perform the work they promise." The settlement, he said holds the consortium's companies "responsible for their conduct, and helps insure the future longevity of the Central Artery for the citizens of Boston and the greater Northeast."

The only company charged criminally in the tunnel ceiling collapse was Powers Fasteners Inc., which supplied the epoxy that attached the ceiling panels to the tunnel's roof. The Brewster, New York, company settled with Del Valle's family in December.

by Elizabeth Olson