The economics of the Big Dig ceiling collapse

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.