Does the Project Design Matter for the Performance of Infrastructure Execution? An Assessment for Italy
Livio Ferrante and
Calogero Guccio ()
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Marina Cavalieri: University of Catania
Rossana Cristaudo: University of Messina
Livio Ferrante: University of Catania
Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, 2019, vol. 5, issue 1, No 3, 39-77
Abstract This paper aims at analysing the impact of the design phase on performance in public works execution. In the extant literature, the design phase is recognised as one of the possible determinants of inefficiency in public works execution. Despite this, the empirical evidence on the topic remains scarce. Using a large dataset of public works awarded in Italy in 2008–2014, we investigate empirically the relationship between the different choices made in the design phase and performance in public works execution. Our empirical findings show that the presence of an external designer is associated with higher cost and time renegotiations. The issue is especially relevant for small municipalities that rely more heavily on external designers, possibly because of the limited expertise available within their technical offices. Furthermore, regardless of the way the design is managed (in-house or not), we find that design and build contracts do not influence the efficient provision of public works. From a public policy perspective, our findings offer some support to the recent reform of the Italian public procurement regulation that has introduced new accreditation requirements for contracting authorities.
Keywords: Public procurement; Performance in contract execution; Design phase internal/external designer; Design and build contracts (search for similar items in EconPapers)
JEL-codes: L51 H57 (search for similar items in EconPapers)
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