Contract modifications: good in practice, bad in theory? Exploring new data concerning Italy

Economia Italiana--Stéphane Saussier, mars 2024

Abstract

This paper explores the issue of renegotiation in Italian public procurement contracts, offering a new perspective through the use of original data. We focus on the European Union directives introduced in 2014 and implemented since 2016, which aim to enhance transparency in contractual renegotiations (Directives 2014/23/EU, 2014/24/EU, 2014/25/EU). These directives are the first to address both the execution and award procedures of public contracts, mandating that public contractors disclose significant contract modifications.

Using web-scraped contract modification notices (CMNs) published between January 2016 and December 2023 in Italy, we compile a dataset of 1,577 CMNs after data. To assess how renegotiations are perceived by public authorities, we conduct a sentiment analysis of the justifications provided for these modifications. Our preliminary results suggest that renegotiations are not viewed negatively by public authorities, with many justifications emphasizing cooperative behaviors between contracting parties.
See the article here :https://economiaitaliana.org/wp-content/uploads/EI_2024_3_02_S_Saussier_D-compressed.pdf

Read the full article here