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BECHTEL/PARSONS BRINCKERHOFF STATEMENT ON POSSIBLE LAWSUIT RELATED TO BOSTON CENTRAL ARTERY/TUNNEL

December 11, 2003 It has been reported that there may be a lawsuit accusing Bechtel/Parsons Brinckerhoff (B/P) of misleading state officials about the true cost of the project. This accusation is demonstrably false. B/PB is proud of its work on the Central Artery, and accepts full responsibility for that work. We remain committed to participating in an objective, fault-based and credible cost recovery negotiation process, which is the most efficient and effective way to resolve any differences.   Should retired Judge Ginsburg determine that lawsuits costing millions of state dollars are preferable to the cost recovery negotiation process, we will without doubt show that B/PB kept the appropriate public officials fully and accurately informed about potential costs at all stages and that those state officials were in full control of all of the decisions which drove project costs. 

This issue has received intense scrutiny and has been reviewed by several State and Federal oversight agencies.  Indeed, the Inspector General of the Commonwealth of Massachusetts issued a report in March 2001 stating:

 “In 1994 Bechtel/Parsons Brinckerhoff  (B/PB) provided the Governor and state officials with a Big Dig cost estimate of almost $14 billion, a figure uncannily close to the current $l4.l billion estimate.  B/PB’s $14 billion estimate in 1994 starkly contradicted the $8 billion estimate (more exactly $7.998 billion) offered publicly by Big Dig officials at that time...These [state] officials made the management, policy and fiduciary decisions that led the Big Dig to its current financial situation[emphasis added].
Any attempt to shift to B/PB the responsibility for accumulated decisions by successive administrations and their officials concerning one of the most challenging engineering projects in history is untenable. 
We are confident that our accomplishments will stand up to any fair-minded review or legal challenge.