Overview
The guidance documents are intended to provide technical guidance and help with interpretation and understanding of the Procurement Act 2023.
These documents should be read in conjunction with the Procurement Act 2023 and its associated regulations and are aimed at procurement practitioners and commercial policy leads in contracting authorities. They are intended to provide technical guidance and help with interpretation and understanding of the Procurement Act 2023.
Under a concession contract, the supplier receives at least part of their remuneration from users of the works or services they are providing. As such, suppliers are exposed to a potential loss on their investment due to demand fluctuations.
There are two different types of concession contracts:
- a concession contract for the supply of works; for example for the construction and operation of a toll road where the supplier would receive income directly from users of the toll road
- a concession contract for the supply of services; for example a contract to operate a leisure centre where the supplier would receive income directly from customers using the centre
The general rule is that the Act will apply to concessions in the same way as it applies to other procurement. However, there are exceptions to the general rule and in some instances specific provisions provide additional flexibility for concessions.
Legal framework
- Section 8
Other guidance relevant to this area
Contracting authorities awarding concession contracts will need to understand the whole of the Act, as the same provisions (for example, relating to competitive tendering procedures, conditions of participation and award criteria) as apply to contracting authorities awarding other contracts apply. The only exceptions and flexibilities are set out in this guidance.
The following guidance is of particular relevance to concession contracts:
- Mixed procurement
- Valuation of contracts
- Exempted contracts
- Thresholds