All the takes are correct, but they don't really explain the root of the problem imo.
We can recognize all these problems with budgets - that sales is incentivized to sell under budget, and submit change orders or project renewals later to get more money. Yet why does this happen? Can a private company really compel a government to change a contract? If the government really wanted to, they could take steps to limit the budgets, sue, nationalize a business, etc... This brings concerns that a government could wield it's power to exploit private companies, but I don't think people would be that opposed to the idea of a government trying to save taxpayer money.
The core of the issue is actually cultural. In business circles, closing a sale is considered a "skill". Lying, cheating, bribery - these are all culturally laundered as a method of sales tactics, and businesses laud salesman that can close above all else. I would argue that this is a cornerstone of business culture, at least in the US.
I think this is the core of why bids are so far off, and even a core issue with the world economics. A large portion of business occurs in the "enterprise" space behind closed doors, and the sales process is very obfuscated. It is the opposite of a free transparent market. These deals occur behind closed doors, net salesman a bundle in commission, and fall apart when they have to be implemented.
We can recognize all these problems with budgets - that sales is incentivized to sell under budget, and submit change orders or project renewals later to get more money. Yet why does this happen? Can a private company really compel a government to change a contract? If the government really wanted to, they could take steps to limit the budgets, sue, nationalize a business, etc... This brings concerns that a government could wield it's power to exploit private companies, but I don't think people would be that opposed to the idea of a government trying to save taxpayer money.
The core of the issue is actually cultural. In business circles, closing a sale is considered a "skill". Lying, cheating, bribery - these are all culturally laundered as a method of sales tactics, and businesses laud salesman that can close above all else. I would argue that this is a cornerstone of business culture, at least in the US.
I think this is the core of why bids are so far off, and even a core issue with the world economics. A large portion of business occurs in the "enterprise" space behind closed doors, and the sales process is very obfuscated. It is the opposite of a free transparent market. These deals occur behind closed doors, net salesman a bundle in commission, and fall apart when they have to be implemented.