Measuring the efficient management of public works contracts: A non-parametric approach

The efficiency of execution of public works contracts is usually defined in terms of the capacity to complete works within the costs and the time agreed on in the contract. Therefore, it has been traditionally measured considering either costs overruns or delays. Our purpose is to consider both measures simultaneously, so as to develop a measure of overall efficiency of public works contracts execution. We compute this measure, through a benchmark procedure, using a non-parametric approach (DEA - Data Envelopment Analysis). The analysis is carried out employing a detailed data set of Italian public contracts for roads and highways, in the period 2000- 2005.