Project risk and Cost Analysis Analysis of projected costs This paper aims to examine the project and offer suggestions for mitigating costs and minimizing risks. The California High-Speed Rail Authority expects the expenses to be $77 billion, up from the initial projections presented to voters in 2008 of $33 billion, which ranged from $53.4 billion to $68.4 billion (Deakin, 2017). The second phase of the rail’s development, which will bring it to San Diego and Sacramento, is still in the planning stages. On schedule for completion in 2022, the first operational section between Bakersfield and San Jose Diridon Station is scheduled to open in 2027, while the entire first phase between Anaheim and San Francisco is scheduled to begin operation in 2033 (Deakin, 2017). The funds were earmarked for paying for necessities like food and labour. Beginning with an initial outlay of $3.5 billion, the government provided crucial funding for the rail’s construction (Hardiman, 2020). Voters also gave the go-ahead to issue a $10 billion bond to fund the rail project (Hardiman, 2020). Voters in California were presented with the proposal to create the rail system in 2008, and after receiving approval, the building began in 2013. This venture is owned and operated by the California High-Speed Rail Authority. For instance, a trip from San Francisco to Los Angeles and Anaheim via Central Valley will take less than three hours. Due to the fast speed of electronic passenger trains, the system is expected to completely revolutionize regional transportation (Wheeler et al., 2021). The project is at risk because many people, including the taxpayer, the local government, and the federal government, have lost confidence in the project, with some calling it “a train to nowhere.” IntroductionĬonstruction continues on the California High-Speed Rail system. The research proved that cost overruns are caused by poor planning, poor contract management, poor oversight, and poor managerial skills. This paper looks at the costs, the risks involved, and the measures that the authority responsible for the project can take to ensure that the project succeeds. The costs incurred by the project are higher than anticipated and are projected to increase with time. The California High-Speed Rail, which was supposed to have been completed in 2018, is ongoing and still has a long way to go.
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