vestwell vestwell vestwell
  • About
  • Contact
  • Testimonials
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Friday, May 27, 2022
No Result
View All Result
CALIFORNIA BUSINESS JOURNAL
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
CALIFORNIA BUSINESS JOURNAL
government-procurement

How To Calculate The Value of Private and Public Procurement Contracts

Concession agreements with a government can be extremely advantageous. Private entities that are granted exclusive rights to acquire goods, services and works can enjoy the benefits of a concession contract for at least 25 years.

by California Business Journal Editorial Staff
A A
Share on FacebookShare on Twitter

Concession agreements are highly regulated as concessionaires must adhere to a complex string of principles, rules and procedures.

In the EU, for instance, public procurement laws and regulations are governed by EU Directive 2014/23/EU.

Consideration for the works or services includes the risk of operating at an economic loss. There is no guarantee that profits will be made on the investment.

Calculating the Value of Concession Contracts

Evaluating Public and Private Procurement (PPP) agreements requires long-term planning. The primary focus is to calculate the estimated turnover for the lifespan of the contract – which is typically 25-30 years.

Consideration must be given to the amount of investment you will receive from third party stakeholders such as investors, grants and performance bonuses awarded by public authorities.

Also determine whether you can generate revenue from the sale of assets that form part of the concession contract, together with supplies and services, and possible income from competitions or awards.

ADVERTISEMENT

The long-term future of most PPP projects is difficult to predict. The main risks are lower than expected channels of income and the volatility of costs for services and materials in a notoriously unstable market.

Estimates can clearly only be predicted at the time you are applying for the concession agreement. In accordance with Concession Contract Regulations (CCR) 2016, financial projections are permitted a 20% swing otherwise the contract must be recalculated.

A recalculation could have particular significance if regulators deem firms to have neglected thorough due diligence. Failure to comply with principles, rules and procedures stipulated by laws and regulations may mean the pouring body will cancel the contract and advertise it for other bidders.

The length of term plays a significant role in any decisive action governing bodies will enforce. The duration must allow the concessionaire to recoup some portion of the initial investment for that term.

Section 3 of the CCR states: “the value of a concession contract shall be the total turnover of the concessionaire generated over the duration of the contract, net of value-added tax, as estimated by the contracting authority or utility, in consideration for the works and services which are the object of the concession contract and for the supplies incidental to such works and services.”

The rules for calculating the value of a concession contract can be problematic if you are not familiar with public procurement laws and regulations. The terms of a concession agreement largely depend on its desirability.

Related Posts

american-flag
Dreamers Won Full Restoration of DACA…What Now?
CESAR HERNANDEZ-CEO-OMNI PUBLIC
The Public Affairs Firm of the Future
Tags: benefitsDirectivefinancialfocusgrantsinvestmentpartyregulationsrevenuevalue
ADVERTISEMENT
California Business Journal Editorial Staff

California Business Journal Editorial Staff

Related Posts

CESAR HERNANDEZ-CEO-OMNI PUBLIC
The Public Affairs Firm of the Future
american-flag
Dreamers Won Full Restoration of DACA…What Now?
advertisement
Facebook Twitter LinkedIn Instagram LinkedIn

Advertise With CBJ

1REALTOUR-SAN DIEGO-WEB DESIGN
Facebook Twitter LinkedIn LinkedIn Instagram
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Marketing
  • Medical
  • News
  • Newsletter
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • Gavel, scales of justice and law books

    Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    0 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • New Study: California’s 10 Universities That Produce the Most CEOs

    0 shares
    Share 0 Tweet 0
  • Five Reasons Why The Government Does Not Like Bitcoin

    0 shares
    Share 0 Tweet 0
  • The Only Way

    0 shares
    Share 0 Tweet 0
  • How to Start a Telecommunication Business: A Step-By-Step Guide

    0 shares
    Share 0 Tweet 0
  • Is Virtual Financial the Future of Financial Services?

    0 shares
    Share 0 Tweet 0
  • Best Crypto Faucets You Can Try In 2021 and 2022

    0 shares
    Share 0 Tweet 0

Latest Articles

Computer monitor

Work from Home Tips: Functions and Uses of Computer Monitor

Founder Anthony DeGalbo of OnlyOptionsTrades

How Anthony Degalbo Created a Multi-Million Dollar Financial Education Company in One Year

personal-trainer

What Kind of Personal Training Certification is Best For You?

What Are the Best Torrent Sites for Games

What Are the Best Torrent Sites for Games in 2022?

Short-Sleeved Summer Dress

What to Wear with Your Short-Sleeved Dress this Summer

6 Good Reasons to Do a Master's In Urban Education

6 Good Reasons to Do a Master’s In Urban Education

CraftyDelivers.com

Why You Should Consider Offering Employee Snacks and Corporate Catering

Moving Day

In Focus: Move Central

How To Improve Your Home Budget Without Changing Your Job

How To Improve Your Home Budget Without Changing Your Job

dollar

Founder Lindsey Head of Head Consulting Is the Latest Entrepreneur to Obtain Financial Backing From Burns Funding

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR