Economies of scale make absolutely no difference if you have a baseline margin. You could have 10 small contracts at $40 million or one large one at $400 million with the same margins and the bigger one isn't going to earn you more, just because of economies of scale. Sure, labour and material/plant procurement might be cheaper in the case of a larger contract (because of economies of scale) - but in this environment, those savings have already been priced into the tender amounts. In most large contracts, these savings have already been priced into the tender amounts.
Variations? Of course that's where any construction company makes their cream, but no ASX company publishes forecast income based on anticipated variations. Could you imagine what NWH thought they would *actually* get out of Roy Hill when they rubbed their hands together thinking of variations back in Sept 2013? In fact, they had millions of dollars of variations raised for Roy Hill, of which sweet-FA were actually paid out.
In the end it all ended in tears, and SCT wasn't entirely to blame in that case unlike what you would read on HC.
Bullish Sign? - Bounced off 200 EMA, page-68
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Last
$2.74 |
Change
0.020(0.74%) |
Mkt cap ! $1.241B | |||
| Open | High | Low | Value | Volume |
| $2.74 | $2.78 | $2.71 | $3.207M | 1.168M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 4913 | $2.74 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.76 | 15723 | 4 |
View Market Depth
| Last trade - 16.10pm 21/05/2024 (20 minute delay) ? |
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Last
$2.74 |
Change
0.020 ( 0.81 %) |
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| Open | High | Low | Volume | ||
| $2.73 | $2.78 | $2.71 | 220711 | ||
| Last updated 15.59pm 21/05/2024 ? | |||||
| NWH (ASX) Chart |