QUALITY ASSURANCE IN COMPETITIVELY TENDERED CONTRACTS

In this paper, 3 contractual forms used in the competitive tendering of public transport services are compared. Conclusions drawn from this research are: 1) under the full cost contract the operator must make strictly positive profit in order to maintain quality; 2) with the net cost contract the desired level of quality can be achieved with a lower transfer to the operator if the revenue risk is not too high; and 3) incentive contracts with measured quality included as a variable must include risk compensation for imprecise performance measurements. It is argued that the predictions of the model explain some features of actual tendering contracts.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/856156
• Corporate Authors:

  University of Bath

  Claverton Down
  Bath, Avon  United Kingdom  BA2 7AY
• Authors:
  • Muren, A
• Publication Date: 2000-1

Language

• English

Media Info

• Features: References;
• Pagination: p. 99-111
• Serial:
  • Journal of Transport Economics and Policy
  • Volume: 34
  • Issue Number: 1
  • Publisher: University of Bath
  • ISSN: 0022-5258
  • Serial URL: http://www.jtep.com

Subject/Index Terms

• TRT Terms: Bus transit; Competitive bidding; Contracts; Franchises; Public transit; Quality assurance; Tenders; Urban transit; Urban transportation
• Uncontrolled Terms: Revenue risk
• Subject Areas: Administration and Management; Public Transportation; Society;

Filing Info

• Accession Number: 00791419
• Record Type: Publication
• Files: TRIS, ATRI
• Created Date: Apr 20 2000 12:00AM