Risk distribution in concessions

Abstract

If risk is inherent to all administrative contracts, that is even more true in the case of (public works or services) concession agreements, in which the transfer of a significant risk to the private contracting party is actually a defining feature of the contractual relationship. However, the risk attributed to the concessionaire cannot be excessive, as each risk must be borne by the party who is better placed to deal with it. This article aims therefore to provide a general overview on the main topics regarding the contractual allocation of risks.