16-acre WTC site, mustcontinue work on site 4 as well as site 2. The Port Authority isliable for paying SPI daily penalties with interest retroactive toOct. 5--the day the authority certified site 4 asconstruction-ready and site 2 as partially ready.

At issue was a 400-foot-long wall the authority had constructedon site 4, in the so-called East Bathtub of Ground Zero, which SPIclaimed interfered with its ability to lay the foundation for Tower4. The wall was constructed to support the "box" surrounding thetracks that the No. 1 subway train rides on through the site. Forits part, the authority maintained that the wall was not part ofthe plot it had agreed to turn over to SPI, and that the parcel ascertified on Oct. 5 met the specifications in the original leaseagreement. The two parties agreed last month to bring the matter toarbitration.

The panel ruled that "by changing its plan for excavation underand support of the subway box, and by erecting the soldier pilewall, the Port Authority has neither completed the East Bathtubpreparatory work nor delivered Site 4 in construction-readycondition." On site 2, the authority is required to "burn off" therock-bolt projections in the north slurry wall of the EastBathtub.