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The economics of the Big Dig ceiling collapse
By adamg on Thu, 07/13/2006 - 8:26am
Follow the money, John Daley suggests: Specifically, the money flowing from Big Dig contractors to our best and brightest on Beacon Hill, including newly outraged Tom Reilly.
Tim Lavallee listens to an audio book about Bechtel's practices in Third World countries (you remember Bechtel, as in Bechtel Parsons Brinherhoff, the joint venture that oversaw the Big Dig?) and learns some lessons:
... What I came away from the book thinking was that the same type of scheme that was perpetrated on Third World countries was perpetrated right here in Boston. In the end we drivers got better highways. I truly believe that. But ultimately, the coffers of a couple of corporations got much bigger. ...
Meanwhile, Aaron Margolis keeps track of the rising number of troublesome ceiling slabs:
... This is an issue of public safety, and somebody has been gambling with our lives. 60 or more defects in that one tunnel? That's 60 or more husbands, wives, sons, daughters, brother and sisters who may have been hurt or killed. When one death is one too many, how many defects will it take for someone to declare these tunnels a disaster area? ...
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Comments
RE: Follow the Money
When I worked in the industry (99 – 01), I was privy to a several conversations amongst executive types along the lines of “Modern Continental [the general contractor in question] is the only general contractor to make a profit on Big Dig contracts. The rest of us are to break even, for prestige, and to generate business through new contacts and the projects exposure”.
At the time, it was impossible to outbid Modern for Big Dig work. If Modern was outbid, it was because they weren’t interested in winning that contract. It was well known that Modern owner Les Marino had the best political contacts in the industry.
I do not know the facts on which general contractor earned/lost what amount on the Big Dig. I also have no insight into the earnings of Bechtel/Parsons Brinckerhoff or the countless Dig subcontractors (except for what I’ve learned about Aggregate Industries in the news). But it was quite clear that all the general contractors on the Dig were chasing top dog Modern Continental. They owned the most contracts and they appeared to be making the most money. Why?
I have a feeling that Friday18's story is not unique. I urge anyone with a similar story to document it and inform the public.