Green Line Extension - $1 billion over projections; cancellation on the table

[keithn.livejournal.com]

http://www.bostonglobe.com/metro/2015/08/24/mbta-green-line-extension-cost-billion-more-than-projected/dU65AoqBXDs4T33K97AMXN/story.html

The long-awaited Green Line extension into Somerville and Medford could cost as much as $1 billion more than the T’s initial budget estimates, raising doubt about whether the project will be completed.

I don't even have words for this.

Comments

[teko.livejournal.com]

"The project has been divided into several contracts, and the T must negotiate with its main contractor for the price of each portion. The T is currently negotiating the price tag of one of the largest jobs of the extension, which would create three new stations and tracks. While the T believes that portion could cost $487 million, its main contractor, White-Skanska-Kiewit has estimated that the portion will cost nearly double that -- $889 million."

So wait... they're negotiating each individual piece of this project as it's happening, and they're somehow surprised that their contractor is holding them hostage by doubling their rates? That's about the dumbest way to handle this project I can think of. They're completely at the mercy of their contractors, who can milk each segment for as much as they want.

[gruene.livejournal.com]

Hence the threat to cancel, though that gets less believable as the project goes on. Assuming they do negotiate the price down this time, what are they going to do when the next segment also comes in ridiculously over?