CONTRACT-FORM AND PROCUREMENT COSTS - THE IMPACT OF COMPULSORY MULTIPLE CONTRACTOR LAWS IN CONSTRUCTION

It is claimed that many regulatory rules enforce inefficiencies in ord er to achieve the appearance of cost control, We assess the importance of these claims by measuring the effect of New York state's compulsor y multiple contractor law on the cost of public construction in New Yo rk City, Multiple contractor laws, which exist in many states, prohibi t the use of general contractors in order to promote the appearance of competition. Contrasts of construction costs between buildings with i dentical blind cost estimates indicate that this law increases public construction costs by 8% and increases construction delays by more tha n a calendar year.