1. Presented by Team 4 Dennis Farley, Thomas Demana, Chetan Rao, 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Brinckerhoff – “management consultants”  Origin – The Need  Historic congestion  The elevated Central Artery – out of date when it was completed  Fred Salvucci’s brain child: a subterranean highway  The Challenges  Persuading the public  Mitigation – the key to sell it and the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. Jim Varghese 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

6. Major issues: Known’s, Known Unknowns, Unknown Unknowns BIG DIG TEAM KNOWLEDGE FACTORS AFFECTING THE PROJECT OUTCOMES  Sub-Surface Conditions  Final construction Design from preliminary design with amendments  Flawed designs  Geological & archaeological barriers  Constant water leaks  Fatal ceiling collapse  Sept. 11 2001 terrorist attacks  Maintaining Traffic Flow during construction  Public Safety  Coordination between 110 contractors  Funding for Contingencies  Inflation Known Unknown KnownUnknown Chetan Rao

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