Governments are on the hook for liability settlements through planning and zoning approvals and building inspections. We all end up paying as taxpayers through. I've heard speculation that a major motivation of privatization has more to do with distancing governments from lawsuits than with supposed efficiency.

There was a case some years back where a condo high-rise with an underground parking garage had a small creek flowing through the garage and the foundations were failing. Zoning allowed such structures and the contractor had gone through all permits and inspections. The under-ground aquifer that was the problem was well known, and the zoning planners, the contractor and inspectors likely knew about it. Government still ended up paying.

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