The Awarding of Public Works in Italy: An Analysis of the Mechanisms for the Selection of Contractors

44 Pages Posted: 30 Apr 2011 Last revised: 11 May 2011

See all articles by Francesco Decarolis

Francesco Decarolis

Bocconi University - Department of Economics

Cristina Giorgiantonio

Bank of Italy

Valentina Giovanniello

Government of the Italian Republic (Italy) - Ministry of Justice

Date Written: December 16, 2010

Abstract

Despite successive reforms, public procurement in Italy is still highly fragmented and vulnerable to collusion, corruption and ex-post renegotiation. Other defects are found in the planning stages of the works. These problems are due in part to the regulations on the awarding of public works contracts, which do not guarantee the correct functioning of the selection mechanisms. Indications from the economic literature and international comparisons suggest a series of possible improvements: i) the elimination of automatic exclusion mechanisms for anomalous tenders (which would reduce the risk of collusion between bidders); ii) the centralization of assessments of anomalous offers under the responsibility of larger adjudicating authorities, with an increase in the surety guarantees provided by the winner, to reduce the risk of subsequent renegotiations; iii) stronger anti-corruption measures; iv) more standardized planning and, for the more complex auctions, competitive dialogue.

Keywords: Infrastructure, Auctions, Regulation

JEL Classification: D44, H57, K23, L22

Suggested Citation

Decarolis, Francesco and Giorgiantonio, Cristina and Giovanniello, Valentina, The Awarding of Public Works in Italy: An Analysis of the Mechanisms for the Selection of Contractors (December 16, 2010). Bank of Italy Occasional Paper No. 83, Available at SSRN: https://ssrn.com/abstract=1825987 or http://dx.doi.org/10.2139/ssrn.1825987

Francesco Decarolis

Bocconi University - Department of Economics ( email )

Via Gobbi 5
Milan, 20136
Italy

Cristina Giorgiantonio (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Valentina Giovanniello

Government of the Italian Republic (Italy) - Ministry of Justice ( email )

Italy

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