Monday, March 10, 2008

Dutch Government Wastes Billions of Euros on Public Contracts

Dutch authorities waste billions of Euros annually, due to faulty tenders and contracts. This was announced by experts in the field of contracts. One reason is the lack of knowledge of government officials. They do not know how to specify the quality needed or what is a reasonable price. The government doesn’t even know how much it spends on contracts. Estimates vary between 50 and 100 billion Euro annually. Arjan van Weele, professor of purchase management of the Technical University of Eindhoven, says that even an average company can save 6-8% on a contract by having professional purchasing management.

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