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The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
bylarryjoe ( 135075 ) writes:
When the contract is structured as cost-plus to with "allowable" additional costs, the motivation for the contractor is always to have cost overruns, because those overruns are additional revenue and profit. In fact, it could even be viewed as corporate malfeasance to not extract the maximum cost overruns. Imagine getting your home renovated with this type of contract.
bybogaboga ( 793279 ) writes:
In fact, it could even be viewed as corporate malfeasance to not extract the maximum cost overruns.
I could not have stated it better! After all, the duty of whoever runs a company (in today's USA), is to "maximize shareholder value."
This is one such way to that goal.
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