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What Is a Concession Contract?
A contract where the supplier is paid mainly through the right to exploit the works or service, taking on real operating risk.
How does a concession differ from a public contract?
In a standard contract the buyer pays the supplier. In a concession the supplier earns mainly from exploiting the works or service, for example by charging users, and bears real operating risk.
What are examples of concessions?
Running car parks, leisure centres, catering outlets or toll roads, where the supplier's income depends on demand.
Which rules apply?
The Procurement Act 2023 covers concession contracts, with a higher threshold than for other contracts and some flexibility in how the procurement is run.
