Product in-hand contract is somewhat of an improvement in that it ties the foreign firm to performance levels and allows the domestic tam to acquire operation techniques during the initial management phase. The contractor is obliged to devote particular care to the organization and quality of the plant, which avoids many of the difficulties that can otherwise arise in the start-up period. This is, however, offset by the proportionally higher cost involved. In Algeria's experience, the additional costs of the safety precautions taken by foreign firms is estimate at between 30 and 50 percent. Adding to this already high cost is the fact that there is even less competition among suppliers than with turnkey contract; there are often only one or two tenderers. Moreover, prior studies have often been inadequate, which has led the foreign firms to take additional precautions. It should more difficult for the local party to make for product in-hand contracts because of the packaging of quite distinct operations.