4 ms·
Having to pay more money to a contractor mid-job is also a common theme in free-market home renovations/construction because the same incentives exist for the h
by HWR_14 4y ago
Having to pay more money to a contractor mid-job is also a common theme in free-market home renovations/construction because the same incentives exist for the homeowner as they do for the government in your example. How has the free market solved it using tools the government refuses to use?
- WalterBright 4y agoPeople experienced writing these contracts don't have those problems. I've hired contractors to renovate. They get paid the contractual amount if they complete it. If they fail, they don't get paid till they fix it. It's not rocket science. See this thread for what happens with Boeing and their customers. The free market solves this problem by a thing called "Contract Law" which is enforced by the courts.
- HWR_14 4y ago8% of construction projects from major companies ($5 billion+, publicly traded) are either on-time or on-budget. Obviously a smaller number are both. If you can really solve this problem, you can make a ton of money. Meanwhile, non-trivial projects with clauses like yours are less profitable and therefore tend to be the first delayed when resources are scarce. Which they frequently are. Unless you overpay by default. After all, "on budget" doesn't matter if the budget is 100x what other people are being quoted Meanwhile, how you described Boeing contracts doesn't seem plausible.
- WalterBright 4y agoI used to work for Boeing. You can also see it in the local paper what happens when Boeing fails to meet a contract.