Re:Excess Management Is Costing the U.S. $3T Per Year (2016)
by HWR_14 on Monday January 09, 2023 @12:24AM
(#34307083)
8% 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.
Re:Excess Management Is Costing the U.S. $3T Per Year (2016)
by WalterBright on Monday January 09, 2023 @04:20PM
(#34316233)
I used to work for Boeing. You can also see it in the local paper what happens when Boeing fails to meet a contract.
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.