Search
 

City Considers Audit of Big Dig Claims

BOSTON-An audit of the process by which the Big Dig, the massive highway construction project here in the heart of the city, deals with claims for work that wasn't originally contracted is being considered by the Department of Transportation. The project has already paid out $1 billion in additional work claims.

By Naomi Grossman | Updated on December 27, 2001

BOSTON-The inspector general of the US Department of Transportation is considering an audit of the process by which the Big Dig, the massive highway construction project here in the heart of the city, pays its contractors for extra work.

While local published reports term the DOT’s consideration an “investigation,” Peter Babachicos, a project manager at the DOT’s office here tells GlobeSt.com that he wouldn’t call it an investigation or even an audit. “We’re doing research, he says. “It’s preliminary work and we haven’t decided whether to proceed with an audit.”

One billion dollars in claims charges have already been paid out to contractors on the Big Dig, according to Sean O’Neill, spokesperson for the Big Dig. Approximately $1.2 billion in claims issues need to still be considered. Historically, about half of what is claimed by the contractor is usually paid. “We are well within our negotiation range,” O’Neill tells GlobeSt.com.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.