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$1.65-billion RFQ for California high-speed rail construction

On Behalf of | Jul 31, 2019 | Construction Contracts |

A high-speed rail link connecting San Francisco and Los Angeles has been in the pipeline for a long time but the work has not picked up much pace. With the 2022 deadline for this project not too far away, the federal government is threatening to take away the funds that it had granted for this project. However, it now seems that the pace of work would finally pick up as the California High-Speed Rail Authority has issued a Request for Qualification that is worth approximately $1.65 billion.

According to news reports, the CHSRA is open to awarding the contract to any domestic or international business. The scope of the project includes the design and construction of the track and systems for the 119-mile long first phase of the beleaguered bullet train project. In fact, besides design and construction, the successful bidder will be responsible for maintaining the system for a period that could extend up to 30 years. In order to understand how big the total opportunity is, one should note that this $1.65 billion is only a fraction of the total estimated expenditure of $79 billion that has been estimated for this project.

When a project of this magnitude reaches the execution stage, an automatic demand for various types of services is created. For example, this bullet train construction project includes the construction of the railway tracks, signaling systems, platforms, overhead electrification systems and voltage stations. For projects such as this, primary contractors often use sub-contractors for the actual construction work, and that is where the opportunity lies for businesses, both in California and elsewhere, to get involved.

As most businessmen in the construction industry would know, the first step toward successfully executing a project of this size is to make sure that the construction contract they sign is foolproof. A comprehensive contract not only defines all expectations, timelines and other terms and conditions clearly, but it also acts as a strong defense mechanism in the event of a dispute. Therefore, for any construction project, big or small, a business owner may find it advantageous to have the support and guidance of an attorney who has a rich experience in construction law, construction contracts and also construction litigation.