Abstract
To understand the effects of bidder’s strategies on contractual modifications, this study utilized econometric methods and a database containing 5,434 engineering service contracts from Brazilian federal government. The results demonstrate the effects arising from the trade-off between the low prices presented in the contractor selection phase and the contractual performance measured by contract modifications. Competition among bidders in a reverse auction with multiple rounds of bid submissions can exacerbate this trade-off, potentially incentivizing risk-taking strategies by bidders. Subsequently, this may lead to the need for contract modifications to facilitate the ongoing execution of the contract.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
