The Big Dig Boston’s Central Artery / Tunnel Project EGMT620 Project Presentation

1. The Big DigBoston’s Central Artery / Tunnel ProjectEGMT620 Project Presentation Presented by Team 4 Dennis Farley, Thomas Demana, ChetanRao, Carlos Arguello-Mirazo, Jim Varghese August 29, 2011

2. Project Overview • Central Artery / Tunnel = The Big Dig of Boston • Largest infrastructure project in the U. S. • Replace the elevated Central Artery with Tunnel • Two Bridges over the Charles River • Extend I-90 to Logan Airport • Planning Starts, 1987; Construction begins, 1991; Complete, 2007 • Original estimate $2.6B; Actual Completion: $14.7B ($5.6B in constant $) • Organizations Involved • Mass. Department of Transportation and Mass. Turnpike Authority • Bechtel and Parsons Brinckerhoff – “management consultants” • Origin – The Need • Historic congestion • The elevated Central Artery – out of date when it was completed • Fred Salvucci’s brain child: a subterranean highway • The Challenges • Persuading the public • Mitigation – the key to sell it and the Achilles heel • How to pay for it? The “10-cent dollar” (90% Federal Funding) • The technological barriers • Problems • Thousands of leaks • Fatal Ceiling collapse • Corruption • Results / Benefits • Reduced traffic congestion • Increased property values • The North End reunited BEFORE AFTER Andy Demana

3. Outcome of Project and major issues • All of the original project scope and all of the project’s construction goals were achieved • The budget and schedule were not close to meeting the original estimates • Largest Issue was a very large cost overrun • Several factors contributed: • Environmental Mitigation/Compliance - $3 billion • Scope Creep - $2.7 billion • Public Image Problems Dennis Farley

4. Retrospective: Risk Management • State’s Responsibility was unclear • Unreliable Cost Estimates • New technology • Health and Safety • The EGAP Principle • Mitigating Risk • Transferring Risk • Sharing Risk Carlos Arguello-Mirazo

5. Management Style Issues • Collaborative/Integrated Project Management • Late integration • After 99 percent design was complete • After 45 percent construction was complete - • Organizational Structure • Separated design from construction • Traditional design-bid-build model • James Kerasiotes assumed the role of Project Manager Jim Varghese

6. Major issues: Known’s, Known Unknowns, Unknown Unknowns Unknown BIG DIG TEAM KNOWLEDGE Known Known Unknown FACTORS AFFECTING THE PROJECT OUTCOMES ChetanRao

7. Lessons Learned • Planning • Politics • Organization and Accountability • Risk Management • Lack of risk oversight • Need for independent auditing • Highly technical designs • Unknown soil conditions, existing underground utilities • Ignoring safety warnings • Integrated Project Management is essential • Project status disclosures • Planning • Politics • Integrated Project Management is essential • Project status disclosures • Timely and accurate • Risk Management • Highly technical designs require contingencies • Unknown soil conditions, existing underground utilities • Lack of risk oversight • Ignoring safety warnings Andy Demana