FEEM Re3: “Time Overruns in Public Procurement and Concession Contracts”

Evidence from procurement and concession contracts shows that time overruns are widespread. This article by Chiara D’Alpaos, University of Padua, and Sergio Vergalli, University of Brescia and FEEM, summarizes two studies that investigate causes of time overruns in public procurement and concession contracts and determine the trade-off between the supplier’s option value to delay and the penalty fee to be paid for the delay.

Review of Environment, Energy and Economics – Re3