Artigos Acadêmicos e Noticiosos
URI permanente desta comunidadehttps://repositorio.insper.edu.br/handle/11224/3226
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Artigo de Periódico Noticioso The interplay of discretion and complexity in public contracting and renegotiations(2025) Domingos, Fernando Deodato; Heinrich, Carolyn J.; Saussier, Stéphane; Shiva, MehdiThis article investigates how the use of discretion in public–private contracts interplays with transactional complexity in influencing contract renegotiations. Motivations for contract renegotiations may be positive, negative (e.g., opportunistic), or neutral, and we argue that allowing discretion at the award stage may promote a more relational approach to contracting that fosters cooperation and productive adaptation. Using a dataset of 12,189 renegotiated contracts from the Tenders Electronic Daily eProcurement platform—based on European Union public procurement directives—we apply regression analyses and propensity score matching to examine how contracts are awarded and renegotiated. Our findings suggest that contracts awarded with government discretion are associated with renegotiations that are viewed more positively and less likely to be perceived as opportunistic. However, this beneficial role for discretion appears to be mitigated by contract transactional complexity, making this a critical consideration in efforts to improve the governance of provider relationships and increase public value. By integrating insights from incomplete and relational contracting theories, this study contributes to the public administration and management literature by demonstrating how discretion and complexity jointly shape contract renegotiation dynamics, informing governance strategies that balance flexibility and accountability in public procurement.Artigo Científico Navigating contract renegotiations with sustainability at the helm: Societal benefits and transaction costs(2024) Domingos, Fernando Deodato; Heinrich, Carolyn J.; Saussier, Stéphane; Shiva, MehdiPublic procurement and cross-sector collaborations in national economies offer the opportunity for advances in sustainability practices, including through sustainability-related renegotiations during the execution of public contracts. Using rich, granular data from contract modification notices made publicly available by the European Union (EU) tenders electronic daily (TED), we investigate whether sustainability-related renegotiations, apart from generating positive environmental externalities, also limit ex-post transaction costs associated with contract renegotiations. Transaction costs are assessed in our study by the sentiment of renegotiations (negative or conflictual) and potential red flags associated with overly costly adjustments. Our findings suggest that regardless of whether contracts were initially focused on sustainable issues or not, sustainability-related renegotiations could have the dual benefit of a priori reducing environmental externalities while further limiting ex-post transaction costs associated with contract execution. More generally, contract modifications (renegotiations) may be under-utilised in public procurement contracts given their possible ‘double dividends’.
