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                                                                  EXHIBIT 10.25

[WASHINGTON LOGO]


         LARRY L. MYERS
         Senior Vice President
         Human Resources


December 31, 2001


Vincent L. Kontny                                               VIA FACSIMILE
601 Lido Park Drive #2AB                                        -------------
Newport Beach, CA 92663                                         (949) 723-6666

Dear Vince:

This letter is to confirm the terms and conditions of your ongoing
employment with Washington Group International through January 31,
2003. If the effective date of the Company's Chapter 11 reorganization
is later than January 31, 2002, this letter will be reissued.

1.   POSITION AND SERVICES TO BE RENDERED. As of the Effective Date of
     January 1, 2002, you will report to the Chief Operating Officer, Charlie
     Oliver, and will work approximately 25% of a full-time schedule monthly as:

     o   Executive sponsor of the Company's projects in the Philippines
     o   Executive sponsor of the Pine Bluff project completion
     o   Providing strategic direction to the Mining operating unit, including
         client visits
     o   Providing strategic and general operational input to the Office of the
         Chairman, as well as specific assignments upon request.

2.   COMPENSATION. Your compensation in this position will contain the following
     components:

     o   SALARY. The salary for this position will be $450.00 per hour
         for all hours worked, with an agreed upon schedule of
         approximately 44 hours per month.
     o   RETENTION PAYMENTS. You will receive a prorated amount of the
         March, 2002 retention payment, calculated as of the Effective
         Date, under the terms of your Retention and Severance
         Agreement (executed March 14, 2001). As of the Effective Date
         and change to the new assignment, the Retention and Severance
         Agreement will terminate. The term of this assignment will
         end, by mutual agreement, on January 31, 2003 and will not
         qualify for any severance benefit under the aforementioned
         Agreement or any other policy or program.
o        STOCK OPTIONS. You will be granted, pending Board of
         Directors approval for issuance, non-qualified options to
         purchase 25,000 shares of the Company's common stock. The
         options shall vest on January 31, 2003; the exercise period of

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                                                              Vincent L. Kontny
                                                                    Page 2 of 2

         these options will be open until January 31, 2006. These
         options will be subject to the terms and conditions of the
         Stock Option Plan and such conditions as the Board of
         Directors may impose.
     o   EMERGENCE INCENTIVE. Upon approval by the new Company's Board
         of Directors, you will receive a Chapter 11 Emergence Bonus
         equivalent to 1.75 times your previous annual base salary,
         payable one-third ($277,083) within two weeks of approval by
         the new Board, and two-thirds ($554,167) 12 months later. The
         second payment is conditioned on your active employment
         through January 31, 2003, and may be further conditioned upon
         the Company achieving certain financial performance targets,
         as determined by the Board.

3.   FRINGE BENEFITS. There will be no health and welfare plan or life insurance
     coverage in this position due to the reduced work schedule. You remain
     eligible for 401(k) plan participation. Travel and normal business
     expenses will be reimbursed in accordance with Company policies.

4.   NON-COMPETITION. During the term of this assignment, you will not
     work as an employee, director, agent, or consultant for any
     competitor of Washington Group International or any of its
     operating units, except as agreed to in writing by the Company.
     It is recognized that you are on the board of CBI, and Washington
     Group agrees with your continued service as a Director of that
     company.

To indicate your acceptance of these terms and conditions, please sign
and return one copy of this letter. If you have any questions, please
do not hesitate to contact me.

Sincerely,


/s/ Larry Myers

Larry L. Myers


Agreed and accepted:

/s/ Vincent L. Kontny               01/15/02
----------------------------------------------
Vincent L. Kontny                   Date


cc:    Stephen G. Hanks
       Charlie R. Oliver, Jr.



LLM/aw