  Public infrastructure procurement is crucial as a prerequisite for public and
private investments and for economic and social capital growth. However, low
performance in execution severely hinders infrastructure provision and benefits
delivery. One of the most sensitive phases in public infrastructure procurement
is the design because of the strategic relationship that it potentially creates
between procurers and contractors in the execution stage, affecting the costs
and the duration of the contract. In this paper, using recent developments in
non-parametric frontiers and propensity score matching, we evaluate the
performance in the execution of public works in Italy. The analysis provides
robust evidence of significant improvement of performance where procurers opt
for a design and build contracts, which lead to lower transaction costs,
allowing contractors to better accommodate the project in the execution. Our
findings bear considerable policy implications.
