3 ms·
I wonder if some of the risks of cost-plus could be mitigated by associating it with industry average running costs rather than a per-project basis. So contract
by tomatotomato37 4y ago
I wonder if some of the risks of cost-plus could be mitigated by associating it with industry average running costs rather than a per-project basis. So contractors would get a yearly payment with as long as they are making progress on a project, but any changes to the project are 1-to-1 with additional costs so there would be no benefit to either aggressive cost cutting or sandbagging expenses. Maybe also make it so profit would be rewarded at project completion in proportion to the running costs of however long the project took to prevent pointlessly lagging or rushing projects. Of course there would also have to be bullshit like opportunity cost compensation and shit because these companies are so profit-driven as to crash a project meant for the public good if it means more profit from interest on a 0.5% bank account
- klodolph 4y agoCost-plus is supposed to be primarily for research and development, where the costs are highly variable to begin with.