The availability contract

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The availability contract allows a private entity to modify or construct his own real property in order to allocating it to a public service. The private contractor bears the associated costs and risks and receive a payment from the public authority. The private entity must design and build the structure to be allocated to the exercise of a public service, ensure the constant availability according to the standards defined by the public authority, the perfect maintenance and resolution of any defects.

The private entity is compensated as follow:

  • availability payment depending on the effective availability of the structure;
  • a possible recognition of a contribution in the course of work, but no more than 50% of the cost of construction of the work, only in the case where the PA wishes to acquire the structure at the end of the contract;
  • a possible transfer price in case of purchase of the property by the PA; it must match the remaining commercial value of the structure taking into account the fees paid and any public contribution paid during construction.

The availability contract can be set in different forms:

  • no transfer of ownership;
  • Transfer of ownership to the PA at the end of the contract without additional cost;
  • Transfer of ownership to the PA at the end of the contract with payment of a transfer price.
  • Transfer of ownership to the PA at the end of the contract without further final price and payment of a contribution in the course of work (no more than 50% of construction costs) and