Contract Form and Procurement Costs: The Impact of Compulsory Multiple Contractor Laws in Construction / Orley Ashenfelter, David Ashmore, Randall Filer.

Format:

Book

Author/Creator:

Ashenfelter, Orley.

Contributor:

National Bureau of Economic Research.

Ashmore, David.

Filer, Randall.

Series:

Working Paper Series (National Bureau of Economic Research) no. w5916.

NBER working paper series no. w5916

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Contract Form and Procurement Costs

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1997.

Summary:

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.

Notes:

Print version record

February 1997.