Overpricing of Public Procurement for Construction Works in the Czech Republic Cover Image

Předražování veřejných zakázek na stavební práce
Overpricing of Public Procurement for Construction Works in the Czech Republic

Author(s): Petr Stehlík, František Ochrana
Subject(s): Economy
Published by: Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: public procurement; overpricing of public procurement for construction works; competition in procurement

Summary/Abstract: This paper investigates the purposes for overpricing of public procurement for construction works in the Czech Republic. We tested two potential factors influencing final process – the level of competition and the level of transparency. According findings, each additional bid decreases the final price by 2.19%. In reality this means that the chance for cost savings increases with the number of competing suppliers. The final price also depends on the type of procedure. Our recommendation is to organise public tenders for works in manners allowing for the highest possible level of competition, to do as much as possible to motivate potential suppliers for participation.

  • Issue Year: 63/2015
  • Issue No: 03
  • Page Range: 227-238
  • Page Count: 12