Contractor Quote by Norman Ralph Augustine
“The process of competitively selecting contractors to perform work is based on a system of rewards and penalties, all distributed randomly.”
About This Quote
Source Book: Managing the Contracting Process, 1995
Contract selection uses random rewards and penalties, creating a competitive system.
In simple terms: Random incentives drive contractor competition.
Key Takeaway
Design fair incentive structures.
Themes
business
competition
incentives
Mood
analytical
critical
Type
professional
technical
When to use this quote
- procurement
- project management
- policy design
- risk assessment
Key Concepts
economics
management
randomness
Questions to Reflect On
- How can fairness be ensured?
- What alternatives exist to random incentives?
A Different Perspective
Randomness can lead to unfair outcomes.
