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Managing the contract

A transaction cost analysis of externalisation

Bibliographic Data

ID6304151
AuthorsIan Kavanagh (0000-0003-2361-5385, Aston University), David Parker (0000-0001-7101-3843, Aston University)
Year2000
Volume26
Issue4
Pages1-22
Publication date2000-12-01
Open AccessNo
TypeARTICLE
VenueLocal Government Studies (JOURNAL)
Journal identifiersISSN: 0300-3930 • E-ISSN: 1743-9388
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/03003930008434005
OpenAlexW2025778724
LanguageEN
Citations received9
References cited30

This paper examines the externalisation of the London Borough of Ealing's Technical Services Group between 1994 and 1999, the first local government Technical Services function to be externalised as a whole. The case is discussed in the light of transaction cost theory from economics. The study illustrates the difficulties that arise under local authority competitive tendering where the parties enter into an incomplete contract and rely on mutual goodwill to adjust the contract terms later. The study confirms that transaction costs can be pervasive in local government contracting

Borough · Business · Contract management · Database transaction · Function (biology · Goodwill · Government (linguistics · Industrial organization · Local government · Procurement · Transaction cost · Auction Theory and Applications · Computer Science · Public Administration · Public Procurement and Policy · Public-Private Partnership Projects · Finance · Marketing

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Citations per year0.41
Citation span2004 - 2023 (20)
Highly citedNo

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