Another Big Dig contractor fined for fraud, false billing

Another Big Dig contractor has been fined for fraud in Boston. McCourt Construction in a guilty plea was fined $500k and ordered to pay restitution to the Massachusetts Turnpike Authority of $600k for overbilling. Their scam was billing labor hours at higher rates than workers were paid for nearly four years of work on the project 2002 to 2005.

In probably the worst managed large highway project in US history FHWA, Mass Highways, Mass Pike, Bechtel and Parsons Brinckerhoff established a framework of incentives virtually guaranteed to generate cost over-runs, fraud, and shoddy construction by paying almost everyone involved on a cost-plus or time & materials basis.

Through launching the project before it was planned and beginning construction before design was done the project precipitated a blizzard of change orders and perpetual reworking. Quality control was haphazard, as evidenced by the fatal collapse of a tunnel ceiling that resulted in repair and legal costs of about $150m.

Responsibility for the project was diffuse and managers came and went at such speed there was little accountability.

There have now been ten cases in which managers and contractors were indicted:

http://www.usdoj.gov/usao/ma/bigdig.html

By all accounts only the tip of the iceberg of abuse has been prosecuted in the $16b+ project that has wrought havoc with state and turnpike finances.

TOLLROADSnews 2008-11-07