The article presents the factors influencing the choice of local transport delivery modes in Poland. It is the first quantitative study conducted on a representative sample of municipalities since the 1990s, and it concerns three service delivery modes: contracting-out, cooperation, and corporatization. Most local governments do not invest their own resources to deliver local transport, but rather act as a private market supply regulator and contract the service out to private enterprises. Some of them act based on functional connections within metropolitan areas, joining forces with other local governments. More affluent and densely populated cities opt for corporatization, which gives them greater political control over the delivery process. The presented results are useful for decision-makers who have to select the mode of local transport service provision, as they characterize the municipalities which, in 2017, chose one of the three analyzed modes.
The article describes the perceived burden of transaction costs in externalising three local services in Poland – transport, care services and water and sewage services. The tool for interpreting the results of the empirical study is the concept of transaction costs concerning the difficulties of monitoring services. The article poses questions about which of the analysed monitoring costs are perceived by local government officials as more painful and how this perception differs between the organisational forms of public service provision. The study found that contracts with a public agent are perceived as more expensive than contracts with a private agent. Administrative agreements and purchases from other local governments are important tools for providing services in Poland; they are used to adjust the structure used to provide the service to the size of the market and the resources needed to provide a given service. The effective monitoring of these contracts is a crucial element in building the quality of governance in Poland.