Usually any requirement that the contractor should shoulder all or most risks arises because the employer prefers to have a fixed financial commit- ment, or because he has only a limited allocation of funds which he has no authority to exceed. Some overseas governments will not authorize any expenditure above the tendered sum. This fixing of the price and placing all or most of the risks on the contractor can be expected to lead to generally high prices. Also if unexpected circumstances occur which the contractor has not allowed for, he may tend to adopt ‘short-cut’ methods which do not produce the most satisfactory work, or he.
