California High-Speed Rail Construction Guide with logo and train photo

Categories

The California High-Speed Rail Project is an ambitious, multi-billion-dollar public transportation project involving hundreds — if not thousands — of construction businesses from across the country. This guide for contractors and subcontractors provides some background on the project, as well as all of the contact information necessary to communicate with those at the top of the payment chain and protect payment rights. 

High-Speed Rail quick facts

  • The rail system covers 119 miles 
  • Train speeds will top 220 miles per hour in certain areas
  • Trains will be slowed to 110 miles per hour in shared corridors (as required by regulations)
  • The train is expected to travel to the Los Angeles Basin from San Francisco within three hours 
  • Funding for the project comes from state and federal sources, as well as private investment funds
  • The High-Speed Rail will run on 100% electric renewable energy 

California’s payment rules for contractors

Before we get into the owners, contractors, and surety companies in charge of each part of the CHSR project, it’s important to understand why this information matters, and how to use it. California provides strong payment protection for contractors, subcontractors, and suppliers who contribute labor or materials to any construction project. But in order to qualify for protection, they must communicate with the right people at the right time. 

Because the California High-Speed Rail project is overseen by a government agency, California’s mechanics lien laws don’t apply to this type of project. Instead, there are different rules that the agencies and contractors in charge must follow to ensure that everyone on the project is paid. 

California bond claim laws

California’s bond claim laws require that the general contractor on a public construction project procure a payment bond from a surety company to cover any non-payment claims that arise from subcontractors and suppliers. 

If a subcontractor doesn’t receive payment, they can file a bond claim with the surety to recover the unpaid amount. 

In order to protect their right to file a bond claim, subcontractors must send a 20-day preliminary notice to the public entity, prime contractor, and the surety company. Below, you’ll find the information necessary to send this notice. 

Send a notice for free

It only takes a few minutes to send a notice for free on any job.

California prompt payment laws

California also has Prompt Payment laws that set a deadline for payment to all parties on a project.  

On public construction projects in California, the property owner must pay the general contractor within 30 days of receiving a payment request. Once they receive the payment, the GC has seven days to pay their subcontractors. Each subcontractor then has seven days after receiving payment to pay the party below them. 

If a payment isn’t received by the deadline required by law, the unpaid party is entitled to interest on the payment, as well as any attorney or court fees. 

California High-Speed Rail construction packages

When completed, the rail will run through Los Angeles, Sacramento, and San Francisco via the existing Amtrak rail lines. The state of California created California High-Speed Rail Authority (CHSRA) to oversee this project, which is divided into three packages: Construction Package 1, Construction Package 2-3, and Construction Package 4. 

General contractors: Due to the size and scope of this project, the general contractor responsible for each package is actually a joint venture of several different large GCs. However, for the purpose of providing notices and protecting bond claim rights, subcontractors will only need to notify one point of contact. 

Sureties: Similarly, because of the substantial amount required in the payment bond, the bond for each package is provided by several different sureties jointly. While they do not appear to be acting as a joint venture, they do provide a single point of contact (called the co-surety contact) for the purpose of payment claims.


Construction Package 1

CHSRA Construction Package 1 map

Construction Package 1 (CP 1) is the first construction contract implemented for the California High-Speed Rail. The package covers 32 miles between East American Avenue in Fresno County and Avenue 19 in Madera County. 

According to the CHSRA, construction projects within CP 1 include 12 grade separations, two viaducts, one tunnel, and a river crossing over the San Joaquin River. CP 1 completed a realignment of State Route 99 in February 2019. 

Total contract price: $1,022,998,000

General Contractors

Tutor-Perini, Zachry Construction, and Parsons Joint Venture (JV)
Address: 15901 Olden Street, Sylmar, CA 91342

This is a joint venture between Tutor-Perini, Zachry Construction, and Parsons.

Initial authorized representative for the contractor:
James M. Laing, Senior Vice President
Tutor Perini Corporation
15901 Olden Street, Sylmar, CA 91342

Sureties

Payment bond sum: $1,022,988,000

Attorney in fact: Lisa L. Thornton

  • Liberty Mutual
    175 Berkeley Street, Boston, Massachusetts 02116
  • Travelers Casualty and Surety Company of America
    21688 Gateway Center Drive, Diamond Bar, CA 91765

Initial representative & agent for service of process:
Travelers Casualty and Surety Company of America
21688 Gateway Center Drive, Diamond Bar, CA 91765

Construction manager

Wong+Harris, a joint venture between two firms: 

  • Harris & Associates
    1401 Willow Pass Road, Suite 500, Concord, CA 94520
  • PGH Wong Engineering Inc.
    182 2nd Street, San Francisco, CA 94105

Other representatives for notices

Initial authorized representative for the Authority:

Hugo Mejia, Design Construction Manager
California High-Speed Rail Authority
The Grand, 1401 Fulton Street Fresno, C493721

Copies of all notices from the Contractor regarding disputes, termination, and default notices must be delivered to the following person in addition to the Authority’s authorized representative:

Thomas Fellenz, Chief Counsel
California High-Speed Rail Authority
770 L Street, Suite 800, Sacramento, CA 95814

Copies of all notices from the Authority regarding disputes, termination, and default notices must be delivered to the following persons in addition to the contractor’s authorized representative:

Ronald N. Tutor, Chairman & Chief Executive Officer
Tutor Perini Corporation
15901 Olden Street, Sylmar, CA 91342

Cody Webb, Vice President and General Counsel
Zachry Construction Corporation
2330 N. Loop 1604 W., San Antonio, TX 78248

Todd Wager, President
Parsons Transportation Group
100 West Walnut Street, Pasadena, CA 91124


Construction Package 2-3

CHSRA Construction Package 2-3 map

Construction Package 2–3 (CP 2–3) begins at East American Avenue in Fresno to a mile north of the Tulare-Kern county line.

Projects within CP 2–3 include 36 grade separations — such as overpasses and underpasses and viaducts — in Tulare, Kings, and Fresno County. 

Original contract price: $1,365,335,890

General Contractor

Dragados/Flatiron JV
1775 Park St, Unit 75, Selma, CA 93662

This is a joint venture between Dragados and Flatiron.

Initial authorized representative for the general contractor:
Lloyd Neal, Project Manager/Director
3200 Park Center Drive, Suite 600
Costa Mesa, CA 92626

Sureties

Bonded sum: $1,909,641,887 (increased by rider on June 5, 2015)

Attorney in Fact: Andrea E. Gorbert

Co-surety initial representative:
Liberty Mutual
℅ Corporation Service Company           
80 State Street, Albany, NY 11207

Initial agent for service of process:
Corporation Service Company
80 State Street
Albany, NY 11207-2543

  • Liberty Mutual
    80 State Street, Albany, NY 11207
  • The Continental Insurance Company
    100 Matsonford Road, Suite 200, Radnor, PA 19087
  • Fidelity and Deposit Company of Maryland
    600 Red Brook Boulevard, Owings Mills, MD 21117
  • National Indemnity Company
    1314 Douglas Street, Suite 1400, Omaha, NE 68102
  • Zurich American Insurance Company
    1299 Zurich Way, Schaumburg, IL 60196
  • The Federal Insurance Company
    15 Mountainview Road, Warren, NJ 07059
  • XL Specialty Insurance Company
    Seaview House, 70 Seaview Avenue, Stamford, CT 06902
  • Travelers Casualty and Surety Company of America
    One Tower Square, Hartford, CT 06183

Co-Surety Contact:
Liberty Mutual
℅ Corporation Service Company           
80 State Street, Albany, NY 11207

Construction manager

Arcadis U.S. Inc.
630 Plaza Drive, Suite 200, Highlands Ranch, CO 80129

Other representatives for notices

Initial authorized representative for the Authority:
Jorge Granados, P.E. Construction Manager
1401 Fulton Street, Suite 300
Fresno, CA 93721

Copies of all notices from the Contractor regarding disputes, termination, and default notices must be delivered to the following person in addition to the Authority’s authorized representative:

Thomas Fellenz, Chief Counsel
770 L Street, Suite 620 MS1
Sacramento, CA 95814

Copies of all notices from the Authority regarding disputes, termination, and default notices must be delivered to the following persons in addition to the contractor’s authorized representative:

Alejandro Canga Botteghelz, Attorney-in-Fact
3200 Park Center Drive, Suite 600
Costa Mesa, CA 92626

Facility owners

Each project within CP 2-3 lists a separate facility owner. Subcontractors may need to send notice to the owner responsible for a particular section of the project in addition to the CHSRA. Read the notice provisions in your contract carefully.

  • Settler’s Ditch Company
    P.O. Box 1261, Hanford, CA 93232
  • Corcoran Irrigation District
    P.O. Box 566, Corcoran, CA 93212
  • Deer Creek Storm Water District
    944 Whitley Avenue, Corcoran, CA 93212
  • Deer Creek Water District Legal Counsel
    The Law Offices of Young Wooldridge LLP
    Jeffrey J. Patrick
    1800 30th Street, 4th Floor
    Bakersfield, CA 93301
  • Lakeside Irrigation Water District
    9304 Houston Avenue, Hanford, CA 93230
  • Lower Tule River Irrigation District
    357 East Olive Avenue, Tipton, CA 93272
  • Kings County Water District
    200 North Campus Drive, Hanford, CA 93230
  • Angiola Water District
    944 Whitley Avenue, Suite A, Corcoran, CA 93212
  • Angiola Water District Legal Counsel
    The Law Offices of Young Wooldridge, LLP
    Jeffrey J. Patrick
    1800 30th Street, 4th Floor, Bakersfield, CA 93301
  • Consolidated Irrigation District
    2255 Chandler Street, Selma, CA 93662
  • Alpaugh Irrigation District
    James Atwell, General Manager
    P.O. Box 129, 5458 Road 38, Alpaugh, CA 93201
  • Alpaugh Irrigation District Legal Counsel
    The Law Offices of Young Wooldridge, LLP
    Jeffrey J. Patrick 
    1800 30th Street, 4th Floor
    Bakersfield, CA 93301
  • New Deal Ditch Company
    P.O. Box 877, Corcoran, CA 93212
  • Melga Canal Company
    P.O. Box 877, Corcoran, CA 93212
  • Fresno Irrigation District
    2907 S. Maple Avenue, Fresno, CA 93725
    Attn: General Manager
    Fax: 559-233-8227
  • The People’s Ditch Company
    27922 South Dairy Avenue, Corcoran, CA 93212
  • Verizon California, Inc.
    Albert Aleman
    201 Flynn Road-CAM38FTP, Camarillo, CA 93012

Construction Package 4

CHSRA Construction Package 4 map

The third construction contract of the rail program, Construction Package 4 (CP 4), covers 22 miles, starting a mile north of the Tulare/Kern county line to Poplar Avenue. Retained fill over crossings and viaducts, at-grade embankments, and relocation of four miles of existing Burlington Northern Santa Fe (BNSF) tracks are some of the construction projects within CP 4.

Total contract price: $444,247,000

General contractor

California Rail Builders
400 F Street, Wasco, CA 93280

Initial authorized representative for the contractor: 
Jose Baraja
5670 Wilshire Boulevard, Suite 600
Los Angeles, CA 90036

Sureties

Payment bond amount: $444,247,000

Attorney in fact: Adrienne C. Stevenson

  • Zurich American Insurance Company
    1299 Zurich Way, Schaumburg, IL 60196
  • American Home Assurance Company 
    Michael Yang, Chief Underwriting Officer
    175 Water Street, 18th Floor, New York, NY 10038
  • XL Specialty Insurance Company
    Seaview House, 70 Seaview Avenue, Stamford, CT 06902
  • The Continental Insurance Company
    100 Matsonford Road, Suite 200, Radnor PA 19087

Co-surety initial representative:
Michael Yang, Chief Underwriting Officer
American Home Assurance Company 
175 Water Street, 18th Floor, New York, NY 10038

Co-surety initial agent for service of process:
Gabriel Jacquez, Sr. Vice President
Marsh USA, Inc.
540W Madison St, 12th Floor
Chicago, Illinois 60661
(312) 627-6678

Construction manager 

The HNTB Corporation
4507 N. Front Street, Unit 300, Harrisburg, PA 17110

Other representatives for notices

Initial authorized representative for the Authority: 
Terry Ogle, P.E., Director of Design and Construction
1401 Fulton Street, Suite 300
Fresno, CA 93721

Copies of all notices from the Contractor regarding disputes, termination, and default notices must be delivered to the following person in addition to the Authority’s authorized representative:

Thomas Fellenz, Chief Counsel
770 L Street, Suite 620, MS 1
Sacramento, CA 95814

Copies of all notices from the Authority regarding disputes, termination, and default notices must be delivered to the following persons in addition to the contractor’s authorized representative:

Mario Menendez, General Counsel
9600 Great Hills Trail, Suite 200E
Austin, TX 78759

Facility owners

Each project within CP 4 lists a separate facility owner. Subcontractors may need to send notice to the owner responsible for a particular section of the project in addition to the CHSRA. Read the notice provisions in your contract carefully.

  • Southern California Gas Company
    555 W. Fifth Street, GT11A1, Los Angeles, California 90013 
    Attn: Land and Right of Way
  • North of River Sanitary District
    204 Universe Avenue, Bakersfield, CA 93308
  • Verizon California Inc.
    Albert Aleman
    201 Flynn Road-CAM38FTP, Camarillo, CA 93012
  • Bright House Networks
    Danielle Wade, VP/GM
    4450 California Avenue, Suite A Bakersfield, CA 93309
  • Southern California Edison
    501 S. Marengo Avenue, Alhambra, CA 91803
  • Semitropic Water Storage District
    Jason Gianquinto, General Manager
    1101 Central Avenue, Wasco, CA 93280
  • Semitropic Water Storage District Legal Counsel
    The Law Offices of Young Wooldridge, LLP
    Jeffrey J. Patrick
    1800 30th Street, 4th Floor, Bakersfield, CA 93301
  • Deer Creek Storm Water District
    Matt Hurley, General Manager
    944 Whitley Avenue, Corcoran, CA 93212
  • Deer Creek Water District Legal Counsel
    The Law Offices of Young Wooldridge, LLP
    Jeffrey J. Patrick
    1800 30th Street, 4th Floor, Bakersfield, CA 93301
  • North Kern Water Storage District
    Richard Diamond, General Manager
    33380 Cawelo Extended, Bakersfield, CA 93308
  • North Kern Water Storage District Legal Counsel
    The Law Offices of Young Wooldridge, LLP
    Jeffrey J. Patrick
    1800 30th Street, 4th Floor, Bakersfield, CA 93301
  • North of the River Sanitary District
    LaRue Griffin, District Manager
    208 Universe Avenue, Bakersfield, CA 93308
  • Shafter-Wasco Irrigation District
    Dana Munn, General Manager
    16294 Central Valley Highway, Wasco, CA 93280
  • Shafter-Wasco Irrigation District Legal Counsel
    The Law Offices of Young Wooldridge, LLP
    Jeffrey J. Patrick
    1800 30th Street, 4th Floor, Bakersfield, CA 93301

How to send a 20-day preliminary notice in California

In California, a preliminary notice secures a contractor’s right to make a bond claim later if necessary.

Read more: How to send a 20-day notice in California

If contractors on municipal, state, or county projects have not been paid for labor or materials, they file a bond claim rather than a mechanics lien. Instead of attaching to a physical property the way a mechanics lien does, a bond claim attaches to the payment bond.

To file a bond claim in accordance with California law, contractors must have already sent a preliminary notice to the surety, prime contractor, and public entity within the first 20 days of starting work or providing materials.

How to file a bond claim in California

Unpaid contractors need to send bond claims to the surety and contracting entity as well as any other parties listed by the Little Miller Act.

They must also be careful to make the claim within California’s deadlines. 

Read more: How to make a bond claim in California

Once the surety has received the claim, they will then respond by confirming that the claim has been opened. It will also request that contractors reply with backup materials relevant to the claim and a sworn statement of claim. The contractors return the sworn statement and any backup documentation.

Once the contractors send this information, the bonding company then contacts its customer, giving this prime contractor a chance to respond to or contest the bond claim. 

If the contractors still haven’t received payment, the next step is to file an enforcement action, which is a lawsuit against the surety to enforce the bond claim.