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.