Ann: Appointment of Administrators, page-70

Thanks, I can see what you are saying but is it really the role of Government to ensure that subcontractors aren't underbidding?

In the solar business, RCR were the leader. It must be assumed by all parties ( other than competitors) that RCR knew what they were signing up to. There is no way anyone would have questioned their estimates. 

I do agree, though, that in other cases (where we aren't talking about the market leader) that the quantum of the bid displays the competence. If one is obviously underpriced, then the acceptor of the bid should be fully aware of what position they putting their subcontractor into. I have worked on tenders where it was obvious applicants were incapable of the works, based on their under pricing, under resourcing and under timing. We threw the bid in the bid. 

Alternately, I have rejected customers as I felt they had underbid and would be a nightmare to work with. 

I don't see the need for Government intervention. All parties are, normally, in full knowledge of who they are sleeping with and they should wear the consequences. Legislation and common law already allow for most exceptions to this.