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
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Ebenezer Howard: inventor of the garden city. Book review.
The Grenfell Tower fire, eight years on
A time to pause and reflect as Dubai tower block fire reported just before anniversary.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.
Construction contract awards hit lowest point of 2025
Plummeting for second consecutive month, intensifying concerns for housing and infrastructure goals.
Understanding Mental Health in the Built Environment 2025
Examining the state of mental health in construction, shedding light on levels of stress, anxiety and depression.
The benefits of engaging with insulation manufacturers
When considering ground floor constructions.
Lighting Industry endorses Blueprint for Electrification
The Lighting Industry Association fully supports the ECA Blueprint as a timely, urgent call to action.