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.
CIP team
The Continuous Improvement Process team.
Code of Conduct
Binding code of conduct for HOCHTIEF employees,
summarizing ethical principles at HOCHTIEF.
Compliance
Compliance with prevailing law and HOCHTIEF's internal
directives and standards.
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.
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.
A CTA is thus a way of meeting pension liabilities
through a trust fund.
EU 27
The 27 member states of the European Union.
Hedge accounting
Hedge accounting denotes the accounting treatment of
two or more transactions that are in a designated hedging
relationship. The transactions are such that each wholly or
partly offsets the risk inherent in the other. One of the two
transactions is generally referred to as the hedged item
(the transaction giving rise to the risk) and the other as the
hedging instrument (the transaction hedging the risk). The
two transactions must be viewed jointly when determining
whether they qualify for hedge accounting. According to
International Financial Reporting Standards, the hedge accounting
treatment can only be applied if the hedged item
and hedging instrument qualify for hedge accounting, the
hedging relationship is documented at the inception of the
hedge, the hedge is expected to be highly effective and its
effectiveness can be reliably measured and demonstrated
at the inception of the hedge and in subsequent periods.
