ARTFEED — Contemporary Art Intelligence

Public procurement in culture: how to limit damage from low bids?

opinion-review · 2026-04-27

Public sector is a major client for cultural businesses, which participate in tenders evaluated on technical quality and price. Despite efforts to weight quality more, the economic criterion often leads to very low profit margins, weakening the industry. Firms still bid to increase turnover for access to larger contracts, political relevance, or better credit positions. The author proposes a mechanism: if a bid offers below-threshold margins, the administration commits to advance payment. This would create a trade-off, discouraging excessive discounts and encouraging credible offers. The article argues that discussing such improvements is crucial for the sector's health.

Key facts

  • Public sector is a major client for cultural businesses.
  • Tenders are evaluated on technical and economic criteria.
  • Low profit margins from bidding weaken the cultural industry.
  • Firms bid at a loss to increase turnover for strategic benefits.
  • Proposed solution: advance payment for bids with minimal margins.
  • Advance payment creates a trade-off for administrations.
  • Mechanism aims to indirectly set a minimum price threshold.
  • Article by Stefano Monti, partner at Monti&Taft.

Entities

Artists

  • Stefano Monti

Institutions

  • Monti&Taft
  • Artribune

Locations

  • Italy

Sources