I suspect companies low ball the initial bid to win the contract, then knowing that it's government, they will invariably pay whatever ot takes to complete the job.
I was talking to a civil engineer from Australia at a party we attended. He's involved in the solar industry installing solar farms. He's in the UK working on a variety of projects for the next 5 years. He is here because his wife wanted their children to spend time their grand parents. He told me virtually none of the workers are from the UK, maybe 1 or 2% The rest are subcontractors brought in from wherever they can get them cheap. The main contractor is Turkish based. All materials are sourced mainly from China.
He was telling me they probably have over a £1 billion of projects lined up over the coming years.
I asked why he wasnt working for a UK company. He said there aren't any of any size, unlike in Australia. He said when his time is finished he will go back and continue working for his friend who does the same projects as the UK.
The current site he's working on is being sold to a foreign investor
I did ask him where he was from in Australia, Melbourne he told me, that is what got the conversation going as we have relatives who live near his home. He was missing the weather and lifestyle in Australia.
We used to be a great manufacturer and could do these projects for ourselves.