The meaning of concession in the construction industry
Generally, a thing conceded is a concession. When something is applied for or requested – whether a right, privilege or point of fact (e.g in an argument) – and it is granted, then the thing that has been granted is a concession.
Examples of a concession are:
- The right to roam across somebody else’s land.
- A business that is granted a licence to operate a concession within another business e.g a newspaper stall in a station.
- Conceding a point in an argument e.g as a way to admit defeat.
In the built environment, a concession is a negotiated contract that grants rights to a company by a government, local authority, or other legal entity.
For example, a contractor or other supplier which funds and undertakes works in return for payment through capitalising on the finished works. For example, a main contractor is given the concession to apply tolls to a bridge for a certain period (e.g 30 years) as full or part payment for having built the bridge. Such an arrangement may be part of a complex private finance initiative (PFI).
See concession agreement for a more detailed explanation of the concept.
[edit] Related articles on Designing Buildings Wiki
- Build, own, operate and transfer (BOOT).
- Complex project.
- Concession agreement.
- Construction contract.
- Equivalent project relief provisions.
- How business can bridge the infrastructure gap.
- Managing the procurement process.
- PFIs and adjudication.
- Private finance initiative.
- Public Private Partnership.
Featured articles and news
Professional practical experience for Architects in training
The long process to transform the nature of education and professional practical experience in the Architecture profession following recent reports.
A people-first approach to retrofit
Moving away from the destructive paradigm of fabric-first.
International Electrician Day, 10 June 2025
Celebrating the role of electrical engineers from André-Marie Amperè, today and for the future.
New guide for clients launched at Houses of Parliament
'There has never been a more important time for clients to step up and ...ask the right questions'
The impact of recycled slate tiles
Innovation across the decades.
EPC changes for existing buildings
Changes and their context as the new RdSAP methodology comes into use from 15 June.
Skills England publishes Sector skills needs assessments
Priority areas relating to the built environment highlighted and described in brief.
BSRIA HVAC Market Watch - May 2025 Edition
Heat Pump Market Outlook: Policy, Performance & Refrigerant Trends for 2025–2028.
Committing to EDI in construction with CIOB
Built Environment professional bodies deepen commitment to EDI with two new signatories: CIAT and CICES.
Government Grenfell progress report at a glance
Line by line recomendation overview, with links to more details.
An engaging and lively review of his professional life.
Sustainable heating for listed buildings
A problem that needs to be approached intelligently.
50th Golden anniversary ECA Edmundson apprentice award
Deadline for entries has been extended to Friday 27 June, so don't miss out!
CIAT at the London Festival of Architecture
Designing for Everyone: Breaking Barriers in Inclusive Architecture.
Mixed reactions to apprenticeship and skills reform 2025
A 'welcome shift' for some and a 'backwards step' for others.