Administrative litigation and public procurement outcomes: evidence from Italy

This paper examines how administrative litigation affects the implementation of public procurement and the behaviour of contracting authorities. We link the universe of Italian procurement procedures with newly available administrative court records for the period 2023-2025. Although appeals only involve 0.4 per cent of procedures, they account for 7.2 per cent of total tendered value and are concentrated in large and competitive contracts. Using matched duration models, we find that litigated procedures have award times that are more than 35 per cent longer than comparable non-litigated procedures, with delays extending to the opening of construction sites in public works. We also show that exposure to litigation affects subsequent procurement activity significantly: contracting authorities publish fewer and smaller public works tenders, rely less on open procedures, and make greater use of direct awards. These responses are particularly noticeable among municipalities with a lower administrative capacity.