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
A case study and a warning to would-be developers
Creating four dwellings... after half a century of doing this job, why, oh why, is it so difficult?
Reform of the fire engineering profession
Fire Engineers Advisory Panel: Authoritative Statement, reactions and next steps.
Restoration and renewal of the Palace of Westminster
A complex project of cultural significance from full decant to EMI, opportunities and a potential a way forward.
Apprenticeships and the responsibility we share
Perspectives from the CIOB President as National Apprentice Week comes to a close.
The first line of defence against rain, wind and snow.
Building Safety recap January, 2026
What we missed at the end of last year, and at the start of this...
National Apprenticeship Week 2026, 9-15 Feb
Shining a light on the positive impacts for businesses, their apprentices and the wider economy alike.
Applications and benefits of acoustic flooring
From commercial to retail.
From solid to sprung and ribbed to raised.
Strengthening industry collaboration in Hong Kong
Hong Kong Institute of Construction and The Chartered Institute of Building sign Memorandum of Understanding.
A detailed description from the experts at Cornish Lime.
IHBC planning for growth with corporate plan development
Grow with the Institute by volunteering and CP25 consultation.
Connecting ambition and action for designers and specifiers.
Electrical skills gap deepens as apprenticeship starts fall despite surging demand says ECA.
Built environment bodies deepen joint action on EDI
B.E.Inclusive initiative agree next phase of joint equity, diversity and inclusion (EDI) action plan.
Recognising culture as key to sustainable economic growth
Creative UK Provocation paper: Culture as Growth Infrastructure.