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With bundling, the requirements may eliminate SMEs from contention, and the bidding market may become constrained to a shrinking pool of participants with greater resources to meet the higher thresholds. Escalating bonding and insurance values directly increase bid pricing and that cost flows through to an owner, no matter what.
This would result in large monetary and transactional savings for governments because, for example, approximately 25% of public contracts in the region require time extensions averaging nearly double their original terms, while around 13% experience budget increases of up to 50%. of GDP, according to FISLAC calculations.
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