Determination of Disproportionate Tenders in Public Procurement
Fuentes-Bargues J. L.,
González-Gaya C.
Issue:
Volume 2, Issue 1, February 2013
Pages:
1-9
Published:
10 January 2013
Abstract: Public procurement is one of the fundamental pillars of the construction sector and the understanding of its statutory regulation is one of the keys to success. The government regulates the concept of disproportionate tenders to avoid deals that are too low, something which could jeopardise the execution of the work or cause problems during implementation such as conflicting prices, project modifications and delays. The criteria for determining the disproportionality of the offers are numerous and each contracting authority determines which to use in each process by carrying out a comparative analysis. The results show that the formulas of disproportionality based on a percentage of the bid price are not useful, and the convenience of formulas based on the determination of a low reference which is calculated from both the average of the offers and the standard deviation.
Abstract: Public procurement is one of the fundamental pillars of the construction sector and the understanding of its statutory regulation is one of the keys to success. The government regulates the concept of disproportionate tenders to avoid deals that are too low, something which could jeopardise the execution of the work or cause problems during impleme...
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Managing Healthcare Project Financing Investments: A Corporate Finance Perspective
Issue:
Volume 2, Issue 1, February 2013
Pages:
10-22
Published:
10 January 2013
Abstract: Healthcare infrastructures are a typical risky investment, which can be financed in many different and competing ways, and Public Private Partnership and project financing techniques are increasingly recognized as a useful and appropriate device. Risk identification, transfer, sharing and management are a key point of the whole structure and the risk matrix, used in order to classify and - wherever possible - measure risk is an unavoidable part of the investment package. To the extent that it can be professionally managed by specialized agents, risk sharing or transmission is not a zero sum game, even if risk pricing is never a trivial issue. While the public part traditionally bears core market risk (demand for health services), other key risks, such as those related to construction and management of commercial (hot) activities, are typically transferred to the private part, often represented by a private entity. A corporate finance perspective is crucial for preparing a proper business model, where economic and financial flows are projected along the time span of the investment, with managerial and strategic insights for not ephemeral sustainability. Capital structure issues, rotating around (optimal) leverage, are eventually discussed, starting from a Modigliani & Miller framework, with practical insights and sensitivity analyses.
Abstract: Healthcare infrastructures are a typical risky investment, which can be financed in many different and competing ways, and Public Private Partnership and project financing techniques are increasingly recognized as a useful and appropriate device. Risk identification, transfer, sharing and management are a key point of the whole structure and the ri...
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