IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/5916.html
   My bibliography  Save this paper

Contract Form and Procurement Costs: The Impact of Compulsory Multiple Contractor Laws in Construction

Author

Listed:
  • Orley Ashenfelter
  • David Ashmore
  • Randall Filer

Abstract

It is claimed that many regulatory rules enforce inefficiencies in order to achieve the appearance of cost control. We assess the importance of these claims by measuring the effect of New York state's compulsory multiple contractor law on the cost of public construction in New York City. Multiple contractor laws, which exist in many states, prohibit the use of general contractors in order to promote the appearance of competition. Contrasts of construction costs between buildings with identical blind cost estimates indicate that this law increases public construction costs by 8% and increases construction delays by more than a calendar year.

Suggested Citation

  • Orley Ashenfelter & David Ashmore & Randall Filer, 1997. "Contract Form and Procurement Costs: The Impact of Compulsory Multiple Contractor Laws in Construction," NBER Working Papers 5916, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:5916
    Note: LE
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w5916.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Decarolis, Francesco & Palumbo, Giuliana, 2015. "Renegotiation of public contracts: An empirical analysis," Economics Letters, Elsevier, vol. 132(C), pages 77-81.
    2. Nakanishi, Yoshinobu, 2022. "Determinants of the number of bidders and win-reserve ratio in open competitive tendering: Relationship-specific investments and incomplete contracts," Japan and the World Economy, Elsevier, vol. 63(C).
    3. Murali Jagannathan & Venkata Santosh Kumar Delhi, 2020. "Perceptions of Stakeholders on the ‘Redraftability’ of Construction Contracts," IIM Kozhikode Society & Management Review, , vol. 9(2), pages 152-161, July.
    4. Lisa J. Cameron, 2000. "Limiting Buyer Discretion: Effects on Performance and Price in Long-Term Contracts," American Economic Review, American Economic Association, vol. 90(1), pages 265-281, March.
    5. Alban Richard & Michel Trommetter, 2000. "Choix de mécanismes incitatifs dans les contrats agri-environnementaux," Économie et Prévision, Programme National Persée, vol. 145(4), pages 145-155.

    More about this item

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:5916. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.