Weird as it sounds, you might be able to count yourself lucky. At least this company described here is re-setting expectations in a drastic and somewhat realistic manner halfway through the quarterly debacle. Instead, the management could hold steady 75% of the way through, then squeeze the developers for 90 hour weeks for three months "because you all are behind, and we have to make good on commitments, even if late".
You people are so terribly healthy. They actually reset expectations *before* the deadline? Don't you know that all failures are *caused* by those who point them out?
In my experience the usual way is for everyone to pretend everything is on time, fire anyone who hints otherwise, then blame the contractors. Another possibility is the big wig Potemkin Demo, followed by a reorg where the frauds leave the group, and the peasants left behind are executed for "breaking the code".