Lesson one in our textbook chapter on managing incentives is “You get what you pay for (even when what you pay for is not exactly what you want)”. Case in point is the California cleanup of the 2017 wildfires, at $280,000 per site it’s four times more expensive than similar past cleanups and by far the costliest cleanup in CA history. The state emphasized speed and farmed the job out to the Army Corp of Engineers who hired contractors who were paid by the ton excavated! Paying by the ton created highly u̶n̶p̶r̶e̶d̶i̶c̶t̶a̶b̶l̶e̶ predictable consequences as KQED reports:
…Dan said he saw workers inflate their load weights with wet mud. Sonoma County Supervisor James Gore said he heard similar stories of subcontractors actually being directed to mix metal that should have been recycled into their loads to make them heavier.
“They [contractors] saw it as gold falling from the sky,” Dan said. “That is the biggest issue. They can’t pay tonnage on jobs like this and expect it to be done safely.”
…Krickl pointed to where his home used to stand. It’s a 6-foot deep depression that he affectionately called his “pond”.
That “pond” was created when contractors removed the foundation, soil and an entire concrete pad for Krickl’s garage, leaving behind a large hole.
Here’s my favorite part:
So many sites were over-excavated that the Governor’s Office of Emergency Services recently launched a new program to refill the holes left behind by Army Corps contractors. That’s estimated to cost another $3.5 million.
Hat tip: Carl D.