For people following CA’s HSR (high speed rail) there is
another newspaper article April 6, 2016 in the LA Times. The article is titled: “Senators share their
doubts about bullet train financing with rail officials” and includes details of
conversations with train project members.
The first 29 mile section has begun construction. So far there are more than 300 change orders,
the price tag is an additional $100million.
Regarding government work, change orders often exceed the original bid
price; that is, double or triple the original cost. For a government project these change orders,
just a few months into the project are minuscule in comparison to what this
project has in store. In the article, rail
authority Chairman Dan Richard emphasized the agency does not necessarily have
to pay them. Then goes on to acknowledge
that the state’s failure to deliver parcels on time to the contractor gives
them “the right to charge for delays.”
One of the State Senators asked about the authority’s response
to not adopt a higher cost estimate. The
story goes on to explain that declaring the mischaracterization is not in the
public interest.
Still the most astonishing aspect of CA’s train has to do
with the recent judicial decision. How
could the State attorney build its defense by stating no one can make the assertion
that the CA HSRA isn’t able to adhere to voter demands because they don’t have
project plans? That’s exactly the same thing
as building a skyscraper without blueprints.
Some people who closely follow this project are knowledgeable
about the construction industry and related costs. This post shows rising interest into the
financial concerns that CA’s HSR project does not have the necessary funding to
accomplish its directive. Prior to the
2008 vote which initiated the $9.9billion bond, a Stanford peer group study was
put together by industry and knowledgeable leaders. Their financial estimate for the project is
$212billion. The state says it will cost
$64billion. Already, just barely getting
started on the first 29 miles and only a few months into it, the 300 change
orders come with the $100million addition.
