Concession contracts—materials and resources
Concession contracts—materials and resources

The following Construction guidance note provides comprehensive and up to date legal information covering:

  • Concession contracts—materials and resources
  • Concessions in the UK
  • Build Operate Transfer (BOT) projects
  • PFI/PF2
  • Other useful resources

Brexit impact—public procurement: The UK public procurement regime derives from EU public procurement laws, and is therefore impacted by the UK’s withdrawal from the EU. For general updates on the process and preparations for Brexit, see Practice Note: Brexit timeline. For further reading on the impact of Brexit on public procurement, see Practice Note: Brexit—the implications for public procurement.

A concession is a form of public private partnership (PPP). It is a long term contractual arrangement between a government (or other public sector body) and a private sector operator who has been awarded the concession. See Practice Note: Forms of Public Private Partnerships.

Under a concession agreement, the government grants a private entity—the concessionaire—the exclusive right to build an asset and to operate and maintain it for the agreed term of the concession. A concession will sometimes just be for the operation and maintenance of an existing asset but is often for the building of a new asset (followed then by its operation and maintenance). Alternatively, it may involve both new and existing assets. The term of a concession will typically be 25–30 years.

Concessions effectively transfer the (often considerable) burden of constructing, or improving and maintaining, infrastructure onto the private sector and, in doing so, help to relieve some of the pressure that public sector budgets are typically under. During the term