Ann: SIMPEC Awarded $145M Contract for Iron Bridge Project, page-107

There is of course the risk that the project has overruns and does not meet budget or the schedule with penalties from FMG ensuing etc etc. But This is when you have to put faith in management that they priced the contract to be profitable. if you can provide evidence that they have underpriced it then I will listen but until then it is all hearsay.

I don't believe that there is an incoming CR / dilution. WSI have cash in the bank and FMG will make progress payments as they meet the deliverables in the project. This will be spread out over the course of the project and not in a single lump sum payment. Anyone who has worked in or run a business will understand the basic concepts of cash flow on project work.

Awarding projects like this goes through an assessment process that often involves independent committee members to decide who will win the contract with various factors allocated various weighting levels. So when FMG made their assessment the price of the submitted tender is only one factor and the strength/impact of the price will be weighed up against various other factors. So the final price may not even be the most heavily weighted factor. The ability to deliver the project and the contactors capabilities would probably have more weighting. FMG (and their shareholders) would most certainly not want the project to overrun as this would cost them more in the long run. Yeah sure there could be mediation etc in case of a dispute but again FMG don't want to deal with this shit. They would rather just get it done at a fair and reasonable price that is in line with competition and market expectations.

If FMG were in the business of ripping off contractors and sending them to the wall then before long no one would want to deal with them and it would hurt FMG more as all the capable contractors would tell them to get stuffed and simply would not tender on their work.