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Contract (public service)

Book Chapter (2025)
Author(s)

D.M. van de Velde (TU Delft - Organisation & Governance)

Research Group
Organisation & Governance
DOI related publication
https://doi.org/10.4337/9781035330522-00054
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Publication Year
2025
Language
English
Research Group
Organisation & Governance
Bibliographical Note
Green Open Access added to TU Delft Institutional Repository as part of the Taverne amendment. More information about this copyright law amendment can be found at https://www.openaccess.nl. Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.@en
ISBN (print)
9781035330515
ISBN (electronic)
9781035330522
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Other than for strictly personal use, it is not permitted to download, forward or distribute the text or part of it, without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license such as Creative Commons.

Abstract

A Public Service Contract (PSC) in passenger transport is a legal agreement where a transport authority assigns an operator to provide services under Public Service Obligations (PSOs), often with financial compensation. PSOs ensure socially desirable services that may not be viable without public funding. The shift towards formal contracting of public transport services began in the late 1980s, influenced by New Public Management (NPM). Contracts can be net or gross cost types, affecting risk and service flexibility. Effective contracting requires clear procedures addressing evolving public needs, asset management, service and quality monitoring.

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