How contracting structures affect project outcomes in public procurement
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Each year, billions of dollars are spent on public infrastructure projects which are often plagued by over-running costs, poor quality, or time delays. This column focuses on an under-studied dimension of contract structure in public procurement, namely, whether the various components of a major project are bundled together or tendered separately. The findings suggest that a bundled contract will be preferred when policymakers want to prioritise timely completion, whilst unbundled contracts may be preferred when policymakers want to prioritise infrastructure resilience.
