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Not_FinancialAdvice t1_jb0wtj3 wrote

> A study showed the reason costs overrun more in the US is because different government agencies poach from such an undertaking. For instance they needed a place to store stuff for the 2nd Ave subway, and they wanted to use a local playground for a few months. The parks department charged them an exorbitant amount (tens of millions of IRC) to do so.

I think part of this is due to a management philosophy where every department has to make a profit. As a result, deoartments that are typically cost centers "bill" other departments for their services internally. From one perspective, this makes sense; that means some departments need to keep operations tidy to keep from dumping work on another while walking away with all the proceeds from messy work. Put differently, its basically a method for accounting for all costs of their operations within a sub-organization. Unfortunately, it also means more overhead and can lead to its own issues (as you mentioned).

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