A concession is distinguished by the relevant right to exploit works or services and the transfer of operating risk under the legal definition. User payments alone do not conclusively determine the category. The economic arrangement must be examined.
Examine risk and remuneration
Identify the performance duties, revenue model, guarantees and exposure to demand or supply risk. A contractual label cannot replace the statutory test. Extensive compensation or guaranteed recovery may change the analysis. Distinguish a concession from an ordinary service contract, a lease, a licence or a regulatory authorisation.
Estimate value and design the competition
For 2026/2027 the EU concession threshold is EUR 5,404,000 net. The valuation method differs from simply looking at a payment made by the public body. The expected turnover and applicable statutory rules must be considered. The GWB and KonzVgV set the relevant framework where their scope is met.
Duration and investment
The term should be examined in light of the investment, expected return and legal limits. A long term should not be justified only by a wish for stability. Define the facilities, services, quality, maintenance, reporting and end-of-term obligations so that bidders can assess the actual economic opportunity and risk.
Monitor later changes
Additional sites, revenue opportunities, guarantees or extensions can alter the concession materially. Review the original scope and statutory modification conditions before agreement. The authority also needs information and control rights that allow it to monitor delivery without silently changing the allocated operating risk.
Four practical examples
The following scenarios are illustrative, not reports of actual client matters. The outcome depends on the documents and circumstances of the individual procurement.
Example 1: User-funded car park
An operator receives parking revenue. Examine whether the required operating risk is genuinely transferred. The existence of user payments alone does not prove a concession.
Example 2: Guaranteed costs
The public body promises full cost recovery and a fixed return. Review whether meaningful risk remains. The contract may need a different legal classification despite its title.
Example 3: Long operating term
A project requires significant initial investment. Assess the term against lawful refinancing considerations. A preference for a decades-long relationship is not sufficient by itself.
Example 4: Extra revenue rights
The operator is offered additional commercial areas after award. Check the economic balance and original scope. New earning opportunities may constitute a material change requiring a fresh procedure.
Related topics
Public contracts: definition and classification · Contract modifications and additional public works · Unlawful direct awards and ineffectiveness
Discuss your procurement
For a review, please identify the authority, contract or lot, current procedural stage and any deadline. We can then clarify the scope of the requested work. Contact our team. An enquiry does not itself create a retainer or preserve a legal deadline.
Legal sources
Official legislation and materials, some in German: § 105 GWB – Konzessionen · Konzessionsvergabeverordnung · § 3 KonzVgV – Laufzeit · § 46 EnWG
Updated 13 November 2026. Illustrative guidance on German and EU procurement law.