Cost Overruns Hinder California High Speed Design Changes

Cost overruns of more than $800 million will lead to a redesign of a 65-mile section of the California high speed rail plan.

The cost overruns reportedly occurred because of design changes proposed by a contractor in cost-saving move.

Spanish company Dragados had touted $300 million in savings that could be had by modifying designs proposed by the California High-Speed Rail Authority.

The Authority has since dropped those changes and said in a statement it is working with regulators to resolve the design issues.

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