
Article6 min read
Procurement and Contracts
Gross cost or net cost: which bus contract fits your Authority?
The contract form determines who carries the consequences when fares and passenger numbers do not follow the plan.
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The contract form determines who carries the consequences when fares and passenger numbers do not follow the plan.

Fleet and depot decisions matter, but the contract also has to settle the fares, information and service recovery that shape a passenger’s journey.

Under a gross-cost franchise, the Authority normally retains the fare revenue. The contract should still give the Operator a practical role and a meaningful reason to help grow it.