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The contractors only need to worry about the contract price, which we arrive at through a market bidding procedure before the project. What happens in reality
by yobbo 5y ago
The contractors only need to worry about the contract price, which we arrive at through a market bidding procedure before the project.
What happens in reality is that contractors offer unrealistic prices to get the contract; and when the project fails they demand more time and money in order to complete. Government officials usually agree in order to save face and avoid public fiascos.
- Dracophoenix 5y agoSo you're back to square one. If you can't trust contractors to set a reasonable and realistic prices, then a solution should be a metric or set of metrics by which one can assess what is reasonable and realistic.
- yobbo 5y agoThe whole point is that we don't have to trust contractors if we are willing to let them bear the risk.