Model for Control of Costs of Public Construction: An Instrument for Better Management of Public Expenditures

Abstract

This article proposes and tests a statistical model for control of public construction costs, in a real job. Said model serves to detect the possible existence of overprice in the job analyzed, and can serve to control costs in any public construction work.

Public expenditures with construction jobs in Brazil are estimated at approximately R$ 20 billion per year for the three spheres of power of the Brazilian federation (federal government, states and municipalities), - hence the scope and importance of this study.

Keywords: Control of expenditures, public works, civil construction, order statistics, accountability, corruption fight, transparency in the public sector, imputation of accountability

JEL Classification: E6, E63