What is the importance of cost overruns in government contracts?

Cost overruns are an important issue in government contracts because they can significantly affect the state budget. Cost overruns occur when a government project exceeds its original estimated budget. This can cause financial strain on the government, particularly if the cost overrun is unforeseen or if the government was not able to accurately estimate the cost at the beginning of the contract. Cost overruns can also be a major issue when it comes to the efficacy of a contract. For example, if a contract is estimated to cost $100,000 but actually costs $200,000, the original goal of the contract may not have been met. An increase in cost could mean that the quality of the service or output is not as good as initially promised- or that the timeframe for completion is extended. Therefore, cost overruns are an important issue for government contracts in Washington because they can have a significant impact on government budgets, the quality of the output, and the timeframe for completion. It is important that all parties involved in the contracting process pay close attention to cost estimates and allow for additional funds if needed. This will help to ensure that contracts are completed within budget and to the desired outcome.

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What is the importance of cost overruns in government contracts?

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