COSTS OF PARTICIPATING IN PUBLIC PROCUREMENT AS AN OBJECT OF TRANSACTIONS COSTS

Abstract

Today, given the dynamic growth in the volume of public procurement and in the context of Ukraine’s European integration course, the requirements for transparency, efficiency, and competitiveness of procurement procedures are increasing. Under such conditions, a more detailed understanding of the costs incurred by participants in the procurement process becomes particularly relevant, especially those not directly related to the production of goods or the provision of services. The article examines the essence of transaction costs and determines the attribution of certain payments related to the procurement process of these costs category. Theoretical approaches to their definition, classification, and key characteristics are analyzed. Special attention is paid to the analysis of participation fees in procurement procedures, costs of bid security and performance security, expenses related to procurement appeals, as well as other related costs that may arise for participants/winners during the preparation and submission of tender proposals, ensuring the fulfillment of contractual obligations, administration of concluded contracts, and monitoring of their implementation. The article substantiates that such costs possess the characteristics of transaction costs, as they are associated with the organization, negotiation, and enforcement of contracts and are not related to the production or provision of goods, works, or services. The legal status of the respective payments is analyzed, and their place within the cost structure of business entities is determined depending on their economic substance. The research findings make it possible to clarify the role of transaction costs within the public procurement system and may be used for further academic research in the fields of procurement, accounting, financial analysis, and control, as well as for improving enterprise cost management practices in procurement participation.