First, as someone who left a government contractor for ethical reasons just like setting up cost over runs, any contractor with such a history is very well known in the bid process. Most states simply remove them from the valid pool of bidding prior to putting it out for bid.
Also, most large contracts like this have a process where proposals must include all missed items in the contract. Once a contract is signed most of those will not get an increase in budget. It must be proven that it was missed on both sides due to an obvious mis-communication in the original spec.
Secondly, CA should be considering skytran.net not high speed rail. It's 20 times cheaper, more useful for the people, less resources and more energy efficient, not less. It's also 10x faster to install and faster travel times for the people. Traditional HSR is a dinosaur.
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