Creating a Market On Housing Complex That Is in Favor for Competition
Concession forms usually arise in situations where competition in the market is not well developed, due to the existence of a natural monopoly or unfavorable structural conditions. With the existence of concessions, it is hoped that opportunities for competition in the market quadramerida.com will be opened so as to provide benefits for consumers. In implementing infrastructure using the concession method, there are several advantages that can be obtained, namely:
- Adequate sustainable funding needs which are the government’s main problem in building infrastructure;
- Improving the quantity, quality and efficiency of services through fair competition;
- Improving the quality of infrastructure management and maintenance;
- Encouraging the principle of ”use-pay”, and in certain cases considered the ability to pay of the user.
By looking at these benefits, the government needs to create conducive conditions for the private sector as investors, so that they are willing to cooperate with the government in building infrastructure. The initial step that must be taken in designing a concession is to determine the structure, rights and obligations of the parties. One thing that is quite important in this process is ensuring that there is competition in it, meaning creating a market structure that is in favor of competition. Another component of the design is the term of the concession agreement.
The thing that forms the basis of why it can be called a tread house? Because the building of this style of house immediately hits the ground. As is the case with single houses, this style of landed house is usually separated from one house to another. But what sets it apart is the price of the land on which this house is built, which can be expensive if it is built side by side with other houses. In another sense, between the walls of one house and another side by side or lined up.
If you look at it at a glance, the apartment has a shape that is almost the same as the style of an apartment house. However, this one building looks more luxurious. Setara flats are generally built in the city center which is located close to offices and other activity centers.
Apart from that, apartments in general are also equipped with various very useful facilities that can be used by the people who live in them, for example there are shopping centers, playgrounds, fitness centers, swimming pools, and other facilities.
One of the following types of residential houses that you should know about is flats – which are buildings or buildings built in stages in an environment whose parts are structured according to their functions. This style house can also be categorized as a simple apartment.
The construction of flats is based on solving the problem of housing needs in urban areas where the number of people is always increasing and tends to be denser over time amidst the increasingly limited land area.
The process of selecting prospective concession holders is the most important stage in which the competition should occur. The auction/tender process is the most effective way to determine concession holders, usually starting with making announcements that are widely circulated to all circles or through national newspapers. The problem that often arises is when the incumbent has the advantage of accessing more information compared to those who are new. This problem can be solved through the committee providing good and balanced information to all bidders. Alternative methods that can be used besides using the auction method are negotiation methods and beauty contests.
- Apart from that, there is also a risk of monopolistic practices from concession holders which can be prevented by the following steps:
- Contract structure that allows competition to be created by providing many alternative service providers/services so as to reduce the bargaining position of concession holders;
- Avoiding the use of modifiable tender criteria, such as tariff fixing or manipulated subjects such as technical proposals;
- There are performance bonds in the contract so that concessionaires who fail to carry out their obligations will provide compensation;
- The right of the government as the grantor of the concession to take over the operations of the concession holder if it cannot carry out its services according to the standards set out in the contract;
- Imposing on the concessionaire the obligation to continue providing services until a new concessionaire has been appointed.