TY - JOUR AU - Ashenfelter,Orley AU - Ashmore,David AU - Filer,Randall TI - Contract Form and Procurement Costs: The Impact of Compulsory Multiple Contractor Laws in Construction JF - National Bureau of Economic Research Working Paper Series VL - No. 5916 PY - 1997 Y2 - February 1997 UR - http://www.nber.org/papers/w5916 L1 - http://www.nber.org/papers/w5916.pdf N1 - Author contact info: Orley C. Ashenfelter Industrial Relations Section Firestone Library Princeton University Princeton, NJ 08544 Tel: 609/258-4040 Fax: 609/258-2907 E-Mail: c6789@princeton.edu Randall Filer The Graduate Center CUNY 365 Fifth Avenue New York, NY 10016-4309 Tel: 212/772-5499 E-Mail: rfiler@hunter.cuny.edu AB - It is claimed that many regulatory rules enforce inefficiencies in order to achieve the appearance of cost control. We assess the importance of these claims by measuring the effect of New York state's compulsory multiple contractor law on the cost of public construction in New York City. Multiple contractor laws, which exist in many states, prohibit the use of general contractors in order to promote the appearance of competition. Contrasts of construction costs between buildings with identical blind cost estimates indicate that this law increases public construction costs by 8% and increases construction delays by more than a calendar year. ER -