Backlog (or Work in hand):

The value of the uncompleted portion of projects signed up, at any given time.

BOT (Build, Operate & Transfer):

Projects constructed by private investors under a concession agreement are operated by the private investor for a given period and their ownership eventually returns to the state, which may chose to operate it thereafter or auction a new concession term for the project.


A contract awarded by the state to private investors willing to finance the construction of a project, such as a key highway or bridge, in return for the tolls collected over a given time horizon and according to a predefined pricing policy.

Joint Venture (JV):

Construction companies often collaborate to bid for the construction of a specific project, in order to reduce their exposure to project risk and boost their bid due to the specialization of each JV member in some stage or technical aspect of the project. JVs are separate entities with a time span limited to the construction period. It is common for a member of the JV to assume the role of project leader for an additional fee.

PFI (Private Finance Initiatives):

Financing of the construction of public facilities, such as schools, hospitals, penitentiaries, administrative service etc, by the private sector in return for the long-term lease of the facilities by the state. The scope of PFIs may be extended to include staffing and operating management of the facilities by the private investor.

PPP (Public-Private Partnership):

Private financing method for projects in which the state retains a minority equity participation in the business entity but relinquishes management to its private sector partners.

Project Finance:

Debt financing method in which repayment of the principal is not time-dependant like typical bank loans, rather it is linked to the financial return of the return, thereby reducing overall business risk.