Originally Posted by
manccowboy
Surely the simplest thing todo is what most businesses do......build in fines for not producing on time, Im amazed this has never been done and only release money when targets are met throughout the project.
At a very simple level, my contractor had a small contract with very tight margins. As the contract period drew to a close his estimated costs 5 years previous, and the MODs agreed payments, became increasingly squeezed.
The contractor tries to extend his machinery to the end of the contract but it is prone to increased failure rates and the contractor starts to miss his targets.
The MOD witholds payments because the Contractor did not meet the contract.
The Contractor goes bust.
Now when you only have one contractor, can you afford to have him go bust?