Comment Re:Phoning in from the 1980's (Score 1) 133
I've always assumed its an issue of incentives, like most things of this type.
The people signing the contracts are incentivised to come in under budget, since they will then get rewarded for saving money in that financial years / term / parliament / etc. They know that the rewards will be fairly immediate (annual bonus, pay rise, promotion, etc.) and they know that they will likely have moved jobs to somewhere else in a few years.
By the time the problems with the contract are discovered it is typcially (for stuff this size) many years later, and is someone elses responsibility. The person/people who agreed to the orignal contracts are no where to be found, and have already been rewarded years ago.
In the corporate world, companies sometimes face the same perverse incentives - e.g. a CEO will be incentivised to maximise short term gain at the expenses of long term sustainability (the "Enron" problem). They often respond by making the short term rewards contintingent on long term success - for example, some portion of the executive's renumeration being in long term stock options that can't be realised for 5 years. What's the equivalent that can be done in public service contracting?