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One of the key differences between a job and a contact is the duration of the work -we could think of a contract as a longer term job. The duration of a contract means that it may be subject to many more variables than a job type order for products/services, and these variables can increase cost. Public sector contracts are often cited in term of cost over-runs – they are often highly politically infused which can cause delays and thus increase cost. Here is a great infographic from the February edition of CIMA’s Financial Management which gives some really good examples of the scale of contract costs compared to original plans – of course those plans may not have been great to start with.

 

 

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Read the full article at this link:

15 of the world’s biggest cost overrun projects | CIMA Financial Management Magazine.