Factors Affecting the Value of Compliance Costs of Public Procurement

The system of public procurement generates the transaction costs in both public and private sectors. In the private sector, these costs are referred to as compliance. The paper analyses the size of their ex-ante part and using regression analysis attempts to identify the factors, which are affecting them. The used data file contains 672 observations. The calculations of basic characteristics of data show that the average value of relative ex-ante compliance costs is around 1.6% of the contract price, while the median value is much lower only 0.4%. In terms of the results of the econometric analysis appears interesting that large firms (in comparison with small firms) are not able to achieve a lower relative compliance costs. Factor, which significantly reduces size of compliance costs, is experience.