3 ms·

They must purposefully underbid knowing that they can run up the cost with impunity?

• toyg 10y ago
  Of course. Which is why "lowest bidder" rules are often nonsense (they are usually sold as anti-corruption, but it would be much better to simply have strict clauses against overruns instead).
  • toomuchtodo 10y ago
    Cost plus with absolute transparency would be best.
  • throwaway2048 10y ago
    the problem with that is then overruns bankrupt the venture/company bidding, and it doesn't get completed, and you have to spend even more having somebody else take over.