Measured term contract

Much emphasis is  placed on competence as a prerequisite for tendering for Measured Term Contract in all public sector jobs here in NI. Quite rightly so. However, with tenders being accepted at circa minus 60 minus 40, I fail to understand how any kind of financial health for contractors can be assured by such ridiculously low rates. Surely government has a duty to ensure that appropriate sums are paid for work on public property otherwise contractors may fail financially which will hurt the whole fabric of society. 
Can I ask if anyone is aware of the acceptance of such obscene rates on mainland UK?

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  • % discount for being on retained time and materials contract vs 'normal rate'  I would normally assume, but best if Lyle answers just in case it isn't.

    I'm not a contracts person.

    Mike.