High-speed rail contract lower than expected

June 7, 2013

high speed railA consortium of construction companies from Sylmar, Texas, and Pasadena has won a $985 million contract from the California High Speed Rail Authority to build the first leg of the state’s planned bullet train. (Sacramento Bee)

Tutor Perini Corp. of Sylmar, Zachry Construction of Texas and Parsons Corp. of Pasadena won the contract with a bid substantially lower than early estimates by state officials. The Tutor Perini/Zachry/Parsons team was the lowest of five bidders.

The initial segment of rail will stretch from Madera to the south end of Fresno.

According to state officials, 30 percent of the design work has been completed by consultants and engineers, but the work remaining will be performed by the contract winner.

The next closest bid was about 16 million more than that submitted by Tutor Perini/Zachry/Parsons. The highest bid was $1.5 billion.

Original cost estimates for the segment’s construction were as much as $200 million, according to rail authority officials.

 


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17 Comments

  1. Spirit Filled says:

    Madera to the south end of Fresno.
    Wonder how much that trip will cost? Might take two minutes to get there from Madera. What a waste of money. Like taking a train from Paso to Pismo. What a waste of tax payers money. They should provide quarter horses instead. At least it would be enjoyable.

    Blessings

    (2) 2 Total Votes - 2 up - 0 down
  2. HarryMalone says:

    That’s over $39 million a mile.. before cost over runs and change orders!

    (2) 2 Total Votes - 2 up - 0 down
  3. OsosGrande says:

    Read also that Tutor Perini was/is involved with a mega lawsuit in Vegas regarding the tallest building in the ‘City Center’ project. Improper rebar. No one can use the building above a certain floor. (This is private vs the other ‘Public Projects)
    Tutor Perini are also the ones that provided the failed earthquake bolts on the SF Bay bridge, right in DiFi’s backyard. Talk about pork barrel politics…

    (3) 5 Total Votes - 4 up - 1 down
  4. SLOthinker says:

    Lets look at three sentences in this article:
    1)
    Original cost estimates for the segment’s construction were as much as $200 million, according to rail authority officials.

    2)
    According to state officials, 30 percent of the design work has been completed by consultants and engineers, but the work remaining will be performed by the contract winner.

    3)
    A consortium of construction companies from Sylmar, Texas, and Pasadena has won a $985 million contract from the California High Speed Rail Authority to build the first leg…

    So now lets do some math. If the original estimate was 200 million and 30% of the work is already done, then this work should have come in at 160 million according to the original estimate. So at 985 million it is over six times the original estimate.

    That would have been a better title for this article.

    (3) 5 Total Votes - 4 up - 1 down
  5. r0y says:

    Damn those TEA baggers and their NeoCON cohorts in the CA legislature! They are single-handedly destroying our state. Who in their right mind thinks this is a good idea, will be affordable, will be used, and will not just be “The Big Dig West” – I can see it now.

    This is why we should never vote other than Democrat – to SAVE US from all of this!

    /sarcasm

    (-1) 11 Total Votes - 5 up - 6 down
    • OnTheOtherHand says:

      Well, on the state level, I generally agree with you. But for national politics, the GOP options are often as bad or worse (although usually in a different way.)

      (-5) 13 Total Votes - 4 up - 9 down
  6. Spirit Filled says:

    Andyou bitch about Chaney. Back at you.

    Blessings

    (0) 4 Total Votes - 2 up - 2 down
  7. Pelican1 says:

    The 985 million is simply a STARTING point. by the time this project is complete, and after hundreds of change orders, this project will be in the billions.
    I hope the proposed ridership is worth the investment. I have serious doubts.

    (10) 12 Total Votes - 11 up - 1 down
    • r0y says:

      It’s a solid 25-30 mile stretch that will save about 20+ minutes of travel by car!

      Seriously, click that link and SEE how useful this bullet train will be… the bullet that hopefully puts CA out of our misery.

      (7) 11 Total Votes - 9 up - 2 down
  8. SLOBIRD says:

    Surprise, surprise, surprise, Diane Feinstein’s husband (Richard Blum) is one of the three winners in this contract award. Fear not, he will make up the lower bid (by 9%) with change orders, always happens. One of the other contractors is a firm out of Texas, so funny! Of course, Ms. Feinstein’s sweetie also just got the contract to sell about 56 post offices which she claims is not a conflict of interest because they never discuss financial dealings and his financial firm will be making millions. No conflict but it’s government and all is fair and evil…

    (23) 27 Total Votes - 25 up - 2 down
    • easymoney says:

      I am not the least bit surprised…

      What is most concerning is that that one stretch
      “The initial segment of rail will stretch from Madera to the south end of Fresno.”
      at a cost of ONLY $985 million is about 25 miles…

      (9) 11 Total Votes - 10 up - 1 down
    • OnTheOtherHand says:

      I was going to point out the Feinstein connection myself until I read your post — good job. The Perini part of Tutor Perini was a competitor of Halliburton and profited from the recent wars as well. Of course Feinstein only voted for the Iraq war because of the false information provided by the Bush Administration. (Sarcasm).

      Blum was the Chairman of the board and largest stockholder of Perini. I am betting that he is almost as big a part of the merged entity. And yet so many in this state see his wife as the “Liberal Spokesperson” because she tells them what they expect to hear on a few issues of lesser importance to her/them.

      (8) 10 Total Votes - 9 up - 1 down
    • OnTheOtherHand says:

      Also, I was listening to a public radio news show this morning and they mentioned that Tutor Perini has a reputation for substandard workmanship. Maybe that is why their bid was so much lower. I bet that they won’t be using the bullet train much and I don’t think I will be either — even if it was convenient and economical.

      (4) 6 Total Votes - 5 up - 1 down
      • r0y says:

        Was the mention of Tutor Perini what woke you up? ;-)

        …I keeed I kid!

        (-2) 2 Total Votes - 0 up - 2 down

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