What the contractor may say is not important here. CFO recommends $9M as the total budget. Contractor makes some changes in the plan to reduce cost and proposes $10M, which is still outside the CFO's recommended budget. THIS (i.e. the underlined part) undermines the soundness of the contractor's proposal to complete the project as per CFO's recommendation... because he is basically not able to meet the recommended budget.
Hope this helps!
Hope this helps!








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