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Pay for performance

September 30, 2007

Re "New LAPD building soars, just like its cost," column,

Sept. 26

Whatever happened to performance bonds? In the distant past, contractors submitted bids for a project with the bid package containing a performance bond. If, for any reason, the business awarded the contract was unable to finish the project, the bonding company was obligated to do so. Knowledgeable contractors allowed for cost increases that might occur before finishing the job. The only reason for additional payment was to cover changes, and if the planners did their jobs, few changes were necessary. Nowadays, it appears that few if any public servants are interested in cost containment, and taxpayers are stuck with the bill for their incompetence.

John Richards

Redlands

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