I have an item that costs me 40 to buy. I sell you the item for 200. I get a hundred now and a hundred when you get the item. If I fill the order now I get my 100. However if I wait a year I get an interest free loan on the 40 bucks. Maybe I push you off for 10 years. I not only get the 100 you owe me I also doubled that 40. If I am a big company I can pull this off, if I am a one man operation I can’t. Guess who gets hired for these projects. Hint it isnt Jeff’s gutter repair.
And that is just fixed priced contracts. You can imagine the horrorshow of open ended ones.
I have an item that costs me 40 to buy. I sell you the item for 200. I get a hundred now and a hundred when you get the item. If I fill the order now I get my 100. However if I wait a year I get an interest free loan on the 40 bucks. Maybe I push you off for 10 years. I not only get the 100 you owe me I also doubled that 40. If I am a big company I can pull this off, if I am a one man operation I can’t. Guess who gets hired for these projects. Hint it isnt Jeff’s gutter repair.
And that is just fixed priced contracts. You can imagine the horrorshow of open ended ones.