SAN FRANCISCO—A large number of change orders and a lack of legal power in negotiations with third parties are two main factors that have bogged down California’s high-speed rail project with delays and cost overruns, according to a June 4 Federal Railroad Administration (FRA) report.
The compliance review report was sent to California High-Speed Rail Authority (CHSRA) CEO Ian Choudri along with a letter notifying him of the possible termination of unspent federal grants.
“These change orders have been a major factor in the project’s escalating costs, which have risen from an initial estimate of $33 billion to between $89 and $128 billion,” the report states….