Concession agreement
A concession agreement is a negotiated contract that grants rights to a company by a government, local authority, or other legal entity.
There are two types of concession agreement:
- Works: Where a contractor is contracted to perform construction works in return for payment which is, in full or in part, the right to exploit the works. For example, a contractor who builds a bridge may be given the right to levy a toll on bridge-users.
- Services: Where a contractor is contracted to provide a service and payment is received, in full or in part, from the usage of that service. For example, a contractor is contracted to operate, maintain and invest in public utilities such as water or rail services.
Both types of concession agreement involve a transfer to the contractor of the ‘operating risk’, i.e. the risk that either the demand or supply are not sufficient to make the service or work a profitable venture.
Complex Private Finance Initiative (PFI) projects may include a concession agreement, providing private contractors with the rights to use certain assets. In conferring these rights, however, the government or legal authority may stipulate certain expectations with regard to the level of maintenance and investment that is undertaken, as well as operational standards that must be met.
An example of a high-profile concession agreement is that which exists between the French and British governments and the private contractors The Channel Tunnel Group Ltd. and France-Manche S.A. for the operation of the Channel Tunnel.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
The Planning and Infrastructure bill oulined
With reactions from IHBC and others on its potential impacts.
Farnborough College Unveils its Half-house for Sustainable Construction Training.
Spring Statement 2025 with reactions from industry
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Architects Academy at an insulation manufacturing facility
Programme of technical engagement for aspiring designers.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.
Building Engineering Business Survey Q1 2025
Survey shows growth remains flat as skill shortages and volatile pricing persist.
Construction contract awards remain buoyant
Infrastructure up but residential struggles.
Warm Homes Plan and existing energy bill support policies
Breaking down what existing policies are and what they do.
A dynamic brand built for impact stitched into BSRIA’s building fabric.