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(EST-1838) The Evolution of Public Works Contracting in Brazil

Primary Author: Ms Tatiana Thome de Oliveira
Co-Author(s): Mr Paulo Roberto Kozlowski Tannenbaum Filho; Mr Sergio Rodovalho Pereira

Audience Focus: Basic
Application Type: Application
Venue: 2015 AACE International Annual Meeting, Las Vegas, NV, USA

Abstract: In 1995, the significant number of unfinished projects in Brazil led the Senate to conduct a study on the situation of public construction projects entitled, "The Wastage Portrait in Brazil". The findings indicated the causes of the irregularities to be the chaotic process of budgeting and the great disparity in average costs of projects and services.

By the time the country had overcome its hyperinflation, which had reached 2,477% per year, the executive and the federal legislature began building legal provisions that would set the standards for budgeting of projects to be performed with federal funds.

In the last 20 years, there have been several legal changes with direct impact on the performance of public projects in the country. This paper discusses the historical legal provisions from the Cost Engineering perspective, its impacts on the integrated contract mechanisms (i.e. design and build), and the recent adoption of parametric in cost analysis.