What Is A Concession Agreement?
A concession agreement is a deal of a partnership between companies and the government. These documents will allow corporations to operate certain government projects. Of course, this is under certain conditions and regulations. If you are trying to learn this document, you can use our concession agreement templates and samples for free on this page.
What Are The Elements of Concession Agreement?
There are several basics things you need to understand in this document which are:
- Parties involved – State the parties that are involved in the project such as listing the government as the party that will be the client to confirm this agreement.
- State the exclusivity – Because you are doing the government’s project, then you need to state the exclusivity of your corporation and you have the right to operate certain utilities and the business.
- Early termination – There is also a mechanism of early termination. This will allows the government to deal with the problems and then find better choices.
- Usable for retail purposes – The agreement also needs to state whether large or small vendors can get a portion related to the project’s success.
- Delimiting the privileges and also obligations of the concessionaires – The corporation is allowed to collect the profit from this project and then it should be turned over to the government with certain agreements.
- Aset transfer – The agreement also should specify the necessary assets to be secured. For example, the project requires the corporation to use the properties they have. Then this should be secured until the duration of the agreement ends.
- Risk assessment – In the business, certain risks might occur under certain circumstances. This is needed for the corporation to state the potential risk when carrying out the project. The risk might include such as the financial, political and operational risks. Also, don’t forget to state who will bear the risk.
- Clauses – The clauses will protect and clear out the responsibilities and rights of each party. This will protect both parties from certain issues such as political changes.
How To Win The Government’s Contract
Winning the government’s contract can be a huge benefit to your business. Therefore, before you give a response, you have to do certain research about the departments. By doing this, late you can have a better understanding of:
- The government’s core service
- The government’s directions
- The requirements of the tenders
It is also great when you know that the government is about to release a tender. You are lucky when you have a chance to speak with the project officer before it is released.
Once you have known, you need to read the question slowly and carefully, respond it clearly and never assume that the government knows you. Furthermore, adding a reference is a plus and embrace the duplication too.
To help you understand, you can learn it from our concession agreement example and samples. You can download it for free on this page. And then, use our concession agreement templates to help you draft a perfect agreement.
Concession Agreement Template Sample