I would imagine that there are purchase contracts signed that have certain benchmarks..it may be that it is the builder that pays the penalty if they are not delivered on time or on budget.
In other words, after contracts are signed, its up to the manufacture to eat whatever cost shortfalls or over runs that occur beyond the scope of the signed contract for the initial purchase.
It works both ways..look at the amount of money we payed in penalties after reneging on the contract to build helicopters in the early 90′s..some $500 million?
I would imagine that there are purchase contracts signed that have certain benchmarks..it may be that it is the builder that pays the penalty if they are not delivered on time or on budget.
In other words, after contracts are signed, its up to the manufacture to eat whatever cost shortfalls or over runs that occur beyond the scope of the signed contract for the initial purchase.
It works both ways..look at the amount of money we payed in penalties after reneging on the contract to build helicopters in the early 90′s..some $500 million?