Dig contractor files for bankruptcy

BOSTON. The largest construction contractor on Boston’s beleaguered Big Dig project filed for bankruptcy protection yesterday, the first business day after federal prosecutors charged the company with lying about its work on the nation’s costliest public works project.

Modern Continental Co. made a Chapter 11 filing in federal bankruptcy court in Boston, alleging the state of Massachusetts had failed to pay it for construction work — work for which the state says it was overbilled. The firm has been paid more than $3 billion for Big Dig work, according to state records reviewed by The Associated Press.

Massachusetts Turnpike Authority spokesman Mac Daniel said the state is holding back $20 million from Modern Continental because of disputes over its work