Arizona Concession Agreement
Description
How to fill out Concession Agreement?
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FAQ
A concession agreement is a contract that gives a company the right to operate a specific business within a government's jurisdiction or on another firm's property, subject to particular terms.
Highly complex to implement and administer. May have underlying fiscal costs to the government. Negotiation between parties and finally making a project deal may require long time. May require close regulatory oversight.
Concession agreements often involve contracts between the nongovernmental owner of a facility and a concession owner, or concessionaire. The agreement grants the concessionaire exclusive rights to operate their business in the facility for a stated time and under specified conditions.
Advantages and Disadvantages of Granting a Concession A concession permits an operator to have greater freedom and flexibility to obtain maximum operating effectiveness (using its own management, financial, and technical abilities and knowledge) and guarantee the success of the project.
There are different types of concession contracts, including: ex-leasing, franchise, build- operate-transfer (BOT) etc. Private finance initiatives (PFIs) may also be considered similar to concessions.
There are different types of concession contracts, including: ex-leasing, franchise, build- operate-transfer (BOT) etc. Private finance initiatives (PFIs) may also be considered similar to concessions.
The concession process typically involves the following steps: Development of technical, economic and financial analyses documents for the Data Room. Pre-qualification of bidders. Request for Proposal invitations to pre-qualified bidders.
Some of the essential clauses in a concession agreement are as follows:Definition clause.Scope of the project.Grant of concession.Concession period.Conditions precedent.Damages for delay by the authority.General obligation of the concession holder.General obligation of the authority.More items...?
A concession is a form of permission given to use or release (see disposition) a product (or service) that does not conform to specified requirements. This permission is generally only allowed within specified limits, and for a limited quantity, or time, or specified use.