In practice, though, the government customer often derails those plans by continually tweaking requirements after contracts are signed, forcing contractors to go back and redo tasks already thought to have been completed.

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Most of this rise is likely to take place in the second half of the year, as contracts signed at higher prices after November 2010 start coming due this spring and summer.

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Economists had expected signed contracts to fall 0.2% after a 4.5% increase in January.

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After buying National Steel last year, USS signed new labor contracts shrinking the combined domestic work force by 27%.

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Real had targeted Villareal's Spain international Santi Carzola or Valencia's David Villa after missing out on Ronaldo, but both have recently signed new contracts with their clubs.

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Although no contracts have yet been signed, British Airways was the first airline back in Libya after the embargo was lifted last year, and British Aerospace is said to have begun training programmes for Libyans.

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