The project that got funded is the one whose estimate was furthest from reality. That isn’t bad luck. It’s selection. Every quarter, a room of executives looks at a stack of proposals and funds a few. The ones that win have the best numbers: the highest return, the lowest cost, the shortest timeline. Ask yourself […]
Tag: winner’s curse
Why the Lowest Bid Costs the Most
THE WINNER’S CURSE, PART 1 You didn’t find the best vendor. You found the one who understood the work least. You ran a clean procurement. Five bids came in. You picked the lowest, came in well under the next one up, and the sponsor was pleased. Six months later you’re negotiating the fourth change order […]