New institutional economy: quality of contracting for public works, supply of goods and Provision of services to third parties in the mozambican public administration in maputo

This scientific article, entitled “New Institutional Economics: Quality of Contracting for Public Works, Supply of Goods and Provision of Services to Third Parties in the Mozambican Public Administration in Maputo Public Institutions”, developed within the scope of the activities of the Procurement Management Unit (UGEA), aims to highlight the relevance of public procurement for the development of infrastructure and the provision of essential services, contributing to social well-being and sustainable economic growth. Methodologically, the research adopts a qualitative and applied approach, suitable for understanding the institutional dynamics, administrative practices, organizational constraints and political-legal factors that influence public procurement processes in Mozambique. This approach allows for the interpretation of the perceptions, experiences and practices of the different actors involved in public procurement processes. The results demonstrate that the efficiency of public procurement processes depends on the correct allocation of fixed and variable, direct and indirect costs associated with the contracted goods, works and services. The absence of rigorous mechanisms for monitoring and controlling these costs can compromise the financial sustainability of organizations and create an institutional environment unfavorable to business development. From this perspective, Furubotn and Richter (2005) argue that the New Institutional Economics is based on the existence of positive transaction costs and the principle of methodological individualism. They conclude that institutional limitations persist that can compromise transparency, efficiency, and administrative rationality, highlighting the need to strengthen public governance and institutional control mechanisms.