Engineering giant Bechtel
Corp.'s supervision of the
construction of Boston's Big
Dig tunnel network has been
star-crossed for years, plagued by mammoth cost
overruns and charges of shoddy work.
Now, the death of a motorist killed
by falling ceiling panels has created a full-fledged
scandal, damaging the reputation of San Francisco's
Bechtel and putting the company in legal jeopardy.
Privately held Bechtel led the joint
venture that managed construction of the Big
Dig, a maze of roadways beneath
Boston's downtown and harbor. Ultimately, Bechtel's
potential liability for the ceiling collapse could
exceed the amount of money the company claims to
have made off the project.
The Big Dig
stands as one of the most ambitious -- and most
controversial -- civil engineering projects in
recent U.S. history.
It tore down an elevated freeway
that cut through Boston's historic core, replacing
the looming structure with tunnels.
It spanned the Charles River with a
new bridge, complete with soaring
towers that mimic a Revolutionary War monument
nearby. It connected the state's main east-west
freeway to Logan International Airport via a tunnel
beneath the harbor.
But the project took longer and cost
far more than expected. Over roughly 20 years of
planning, design and construction, costs swelled
from initial estimates of $2.6 billion to $14.6
billion.
That convinced some state officials
that they'd been gouged, setting in motion efforts
to determine whether Bechtel and its joint venture
partner, Parsons Brinckerhoff, were responsible for
any of the cost overruns. Meanwhile, leaks in the
tunnels eroded public confidence.
Under its contract, the liability of
Bechtel and its joint venture partner for project
losses is limited to $150 million. That's more than
the roughly $130 million Bechtel has said that the
joint venture made during the project's
20-year-history.
Since the July 10 accident that
killed 39-year-old Milena Del Valle, who was on her
way to the airport, the fury directed at Bechtel,
Parsons Brinckerhoff and the Massachusetts Turnpike
Authority, the tunnel system's operator, has reached
a crescendo.
The Massachusetts attorney general
has held open the possibility of criminal charges in
Del Valle's death. The embattled head of the
Massachusetts Turnpike Authority, Bechtel's client
on the Big Dig,
has stepped down under heavy pressure from Gov. Mitt
Romney. Del Valle's family has signaled its
intention to sue companies and government agencies
connected to the project.
State and federal investigations
into the collapse are under way and no one has yet
been charged with responsibility
for Del Valle's death. The liability limit might not
apply if the Bechtel joint venture is found to have
engaged in willful misconduct, gross negligence or
fraud.
Bechtel has stood by its Big
Dig work, which included drafting
preliminary designs for the project and overseeing
the many design and construction companies involved.
The company argues that the
complicated nature of the project -- with
multiple businesses designing and building the
project's tunnels, freeway connectors and a new
Charles River bridge -- make assessing blame
difficult.
On some aspects of the work, "it may
be the responsibility ends with the
construction contractor," Bechtel spokesman Jonathan
Marshall said. "On other things, the final
responsibility may rest with the
section design consultant. It's not as simple as
pointing a finger at someone and saying, 'You're
responsible.' "
Marshall said Bechtel's own
examination of the accident had been hampered by the
company's lack of documents detailing work on the
collapsed ceiling.
Bechtel and its joint venture
partners prepared preliminary designs for the
Big Dig,
performing about 25 percent of the total design
effort, according to Bechtel's estimate. Specific
designs for each segment of the project were drafted
by other companies.
Bechtel's main role was serving as
the project's management consultant, a job that New
York attorney and construction expert Barry LePatner
likened to an orchestra conductor, coordinating the
work of multiple contractors and designers.
The San Francisco company said it
completed the preliminary design for the ill-fated
tunnel segment in 1992. State highway officials then
picked another firm, Gannett Fleming, to draft more-
detailed designs for the tunnel, including the
ceiling. Modern Continental was hired for
construction.
Throughout the project, individual
contractors such as Modern Continental were
responsible for quality control on the portions of
tunnel or bridge they were building, according to
Bechtel. The joint venture reviewed contractors'
quality control programs before construction of each
portion began.
Such a division of responsibility is
common on large infrastructure projects, several
construction experts said.
Lawyers versed in construction
contracts say serious or intentional misconduct is
very difficult to prove. In addition, companies in
Bechtel's position -- management consultants
coordinating the work on a large project -- rarely
hold ultimate liability for the project's outcome,
several lawyers said.
"The likelihood of a management
consultant being found liable is very small," said
Patrick Duffy III, a Los Angeles lawyer who
specializes in construction projects at the
Monteleone & McCrory law firm. "In that position,
you typically have a lot of responsibility but very
little liability."
Inspections since the accident have
shown that other bolts used to anchor the tunnel's
ceiling panels were slipping out of place. The
state's attorney general said the companies working
on the tunnel debated the adequacy of those bolts
years ago.
But such debate, construction
experts say, doesn't prove gross misconduct. It can
even demonstrate the opposite -- that project
managers were trying to find and fix potential
problems.
"That kind of debate indicates there
wasn't reckless disregard," said Scott Douglass, a
partner in the Farella Braun & Martel law firm in
San Francisco who specializes in construction
projects.
A Big Dig
memo that surfaced last month, written by a project
supervisor, said the Bechtel joint venture and
Modern Continental, the company that built the
ill-fated tunnel, were warned years ago that bolts
holding the ceiling panels in place might not last.
But Modern Continental last week
claimed that the memo, initially obtained by the
Boston Globe, was a fake. The memo's author insists
it's genuine.
Meanwhile, the turnpike authority
two weeks ago told Massachusetts lawmakers that it
had $800 million in insurance that could be used to
pay for Big Dig
inspections, repairs and lawsuits, Boston papers
reported. A turnpike authority spokeswoman did not
return calls seeking comment.
Earlier this year, Massachusetts
Attorney General Tom Reilly demanded that the joint
venture refund about $108 million. Settlement
negotiations were under way at the time of Del
Valle's death but have since been suspended.
A Reilly spokeswoman said
investigators are trying to determine whether the
joint venture committed the kind of serious or
intentional misconduct necessary to lift Bechtel's
liability limit, among other issues.
"We will follow the evidence where
it takes us," said spokeswoman Meredith Baumann.
"That means everything is on the table."
Chronicle news services
contributed to this report. E-mail David R. Baker at
dbaker@sfchronicle.com.