Price of Big Dig Goes Up--Once Again; More Escalations Are Anticipated

BOSTON-The cost of the Big Dig will go up again, according to the Turnpike Authority, which manages the massive highway construction project in the heart of the city. The authority also acknowledges that those figures could go up even further in the next few weeks.

The project’s price tag is now up to $14.4 billion, according to Rita Strazzeri, spokesperson for the Turnpike Authority. The $150-million increase is because the project has taken a “hit on its reserve fund,” Strazzeri tells GlobeSt.com. The reserve is normally $400 million but has dropped to $250 million. “That figure is as of today,” she says. “The estimate is based upon what we think we’ll need for construction claims. We are still waiting for the final numbers to come in.” The increase is based on the Authority’s internal review. Deloitte & Touche is doing a final review in which the figures could be different.

Strazzeri also acknowledges that those figures could change after this Tuesday when the largest of the remaining construction contracts–tearing down the elevated Artery and preparing the surface land for Downtown parks–is put out to bid. That bid, originally estimated at $406 million, is now reportedly up to $440 million, and there is concern that the bids could go even higher than that. “That could have another hit on the contingency,” notes Strazzeri.