[Rezo]

The Big Dig was one of the "cost-plus" projects mentioned in the article. The contract was for a guaranteed 7% profit on top of costs for design and construction. Is it any wonder that the construction company has zero incentive to do it efficiently or reduce costs! Overruns only bring benefits (more work, paid for by the state), and no downsides.

Another industry that loves their cost-plus projects is interestingly the traditional rocket launching business. Boeing and friends has for decades gotten used to massive cost-plus project contracts from the government for their launches, and is now feeling the pain of having to start to compete with Space X that operates at a magnitude or more efficiently and continues to drive down the price despite already being the cheapest.