Meeting_Body
CONSTRUCTION COMMITTEE
FEBRUARY 18, 2021
Subject
SUBJECT: RAIL PROJECT COSTS
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE status report on rail project costs.
Issue
ISSUE
The question is often asked "why do rail transit projects cost so much?" This report and the attached presentation attempts to address this question in light of LA Metro's past and future rail projects
Background
BACKGROUND
Rail projects by their very nature are very complex undertakings. These projects are located in the heart of the communities they serve and attempt to provide maximum mobility benefits while enhancing communities, minimizing impacts and satisfying numerous technical, regulatory and societal requirements. As a result of these reasons and many others, the costs add up and result in more expensive projects.
Discussion
DISCUSSION
LA Metro and its predecessor organizations have been building rail projects for over 30 years. During this time there has been a considerable increase in the cost of these projects. Likewise across the nation and the world there has been noticeable increase in rail project costs.
The reasons for these increases are varied but include the following:
* Unfunded mandates
* Increased technical requirements
* Environmental ground conditions and cleanup
* Third party stakeholders
* Contractual
* Technical complexity
* Environmental clearance
* Community impacts and mitigation
* Real estate costs
* Fire/Life safety requirements
* Operational requirements
* Business/workforce goals
* Federal requirements
* Railroad interface
* Alignments
* Regulatory oversight
* Security requirements
* Project management and soft costs
* Utilities
* Turnover, Acceptance and Warranties
* Project changes
Most of the reasons above have benefits and make positive contributions to society. However, they often result in increased project costs. Project managers must balance these conflicting and ever-changing r...
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