20% is not a construction industry margin. if you can find an experienced builder in this country making more than 5% margin at the moment please point them out. and pkd are not an experienced builder. pkd will probably lose money if they take this on at the moment.
plus this contract is with the chairman's business - that's not a strong relationship, it's a handout.
plus they didn't say their contract would be $12m. the structure and facade is $7m (i.e. fitout is $5m). pkd do structure. if they veer even into facade they increase their risk.
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