Glossary
“A” model
Financing model for German freeway widening projects conducted in multiple stages and undertaken by private operators. Such projects include adding extra lanes and maintaining, operating and financing segments of freeway. Alongside a start-up loan, the concession holder is paid all road-use charges collected from trucks for use of the freeway segment.Asset management
Asset management means all activities involved in managing buildings and properties. This includes rent accounting, tenant administration, utility billing and support, systems maintenance, energy management, coordinating repairs and refurbishing, as well as short-to-medium-run planning of all cash flows relating to the property.BOOT concession
Under a build-own-operate-transfer (BOOT) concession, the company builds then owns and operates a project for a contractually agreed period before transferring it back to the customer.Captive insurance arrangements
Business-related insurance risks are covered by the Group itself up to a predefined maximum that depends on financial resources and risk philosophy. The most frequently encountered methods are to build in a substantial deductible (per claim or per year, for example) before an insurance policy provides coverage or to have Group-owned (re)insurance companies, known as captives.Cash flow
One of the key figures used to assess a company’s financial position. Represents the net inflow of funds from sales and other operating activities.Contractual trust arrangement (CTA)
A contractual trust arrangement is essentially a form of company pension fund where the fund’s assets have been transferred to a legal entity separate from the company. The company is free to decide the timing and size of asset transfers to the CTA. The terms of contract stipulate that transferred assets are exclusively and irrevocably dedicated to meeting and funding the company’s pension obligations.Construction management at fee
An approach to project management where the construction manager advises the client and, during the design and build phases, provides services for a fee such as administration, construction planning and progress monitoring. The construction manager has little or no financial involvement in the project.Ducon (ductile concrete)
Ducon is a micro-reinforced high-performance concrete whose unique material properties make it an economic, durable solution for a wide range of applications. Ducon combines extremely high ductility with high load resistance. It is particularly well suited for use in slimline components. Typical applications where Ducon can show its full potential are blast-resistant walls and facades, support casings and industrial floors supporting massive loads.Four-brand strategy of HOCHTIEF Construction AG
HOCHTIEF Construction offers four service packages spanning the entire project life cycle.ConTrust brings together construction activities in which HOCHTIEF operates as a general contractor. The company assigns special teams to each customer contract and provides quality management, engineering expertise, advice on financing and after-sales service. Under the partnership-based PreFair business model, all those involved work closely together from the design phase to achieve the best contract outcome. PreFair takes the uncertainty out of construction schedules and budgets. AdMore covers a wide range of individual constructionrelated services, such as engineering, building diagnosis and industrial relocation. FormArt covers the real estate development segment. The FormArt package includes site selection and acquisition, planning site use, commercial feasibility studies, construction planning, turnkey construction of the building as well as refurbishment and upgrading of existing properties.
