Selection of Work to be Tendered
In the case of a route-contract system, it’s necessary to define the individual routes, and to decide whether different contracts should be awarded for different types of service on the same route.

Definition of routes
The unit of tender is normally one route or perhaps a package of up to say, four routes, all of which have at least one terminus in the same area and which serve some operational or financial purpose in being grouped together.

Route network planning is a complex task and it’s desirable that the network is properly planned in order to ensure a good service to the public, and efficient use of buses.

It’s preferable that major route changes are avoided as far as possible during the term of a contract in order to avoid the need for renegotiation mid-term.

Different contracts for different types of service
In many cities, particularly the larger ones, there are two or more standards of service, with different fare scales reflecting the difference in quality of service. Typically, there will be a regular or standard service, and a premium service, using air-conditioned buses in hot climates, and more comfortable seating.

A decision has to be made as to whether or not there should be separate franchises for different types of service, on the same route.

The different service standards cater for different markets and require different types of vehicles, and different operators may wish to specialize in one type of service or another. This may be advantageous, particularly in a very large city where there are many capable operators.

On the other hand, a single operator may be required to provide two or more types of service. There are various ways that this might be done. Different standards of service may be treated as different routes although allocated to one operator. The contract may also specify that buses with different standards are provided, in specified proportions.

The cost and complexity of administering the system will increase with the number of separate franchises. Ease of administration and enforcement must also be a consideration.