ONE ROOF

198 Annual Report 2009
KaufPilot
KaufPilot is the HOCHTIEF procurement service for products
and services comprising part of overhead cost.
Lead buyers
Our lead buyers procure process-critical categories of
mostly high-volume supplies such as facades and concrete.
They combine orders to secure better terms, negotiate
prices, enter into framework contracts as well as
keep a watch on current market and price trends.
LEED
LEED (Leadership in Energy and Environmental Design) is
a US rating system for green building projects. LEED certification
defines precise standards for green buildings. The
LEED rating system is organized into five categories: Sustainable
Sites, Water Efficiency, Energy & Atmosphere,
Materials & Resources, and Indoor Environmental Quality.
Loan duration
The weighted average of interest payment and repayment
dates of loans in force, giving an indication of their average
maturity structure.
Long-term incentive plan (LTIP)
A long-term incentive plan is an incentives system or pay
component offered to selected managerial staff so that
they participate in the company’s long-term success, thus
securing their loyalty to the company.
Net present value (NPV)
Value of an investment, obtained by applying a discount
factor to expected future cash flows. The NPV represents
the present value of future cash inflows and outflows,
which need not be constant over the lifetime of the investment.
Percentage of completion (POC) method
Method of accounting for long-term contracts that computes
the applicable costs and revenues generated by the
project up to the reporting date. Revenues, expense and
earnings are thus reported in line with the progress of a
project to date. This method supersedes the “realization
principle” stipulated by the German Commercial Code,
which does not allow profits from construction contracts
to be recognized until the fiscal year in which a project is
formally accepted by the client.
Public-private partnership
Cooperation between the public sector and usually wellcapitalized
private-sector firms to realize a major investment
project. A characteristic feature of such cooperation
is that the parties pursue common objectives and interests
as regards the project itself even though they differ in
terms of their broader functions.
Syndicated guarantee facility
A loan facility structured by an international banking syndicate
in order to furnish financial guarantees by way of
assurance for clients.
United States Green Building Council
The United States Green Building Council operates under
the umbrella of the World Green Building Council, which
promotes sustainable construction and resource-friendly
buildings worldwide. The Green Building Council also awards
Leadership in Energy and Environmental Design (LEED)
certification, setting precise standards for sustainable
buildings. The LEED rating system is organized into five
categories: Sustainable Sites, Water Efficiency, Energy
and Atmosphere, Materials and Resources, and Indoor
Environmental Quality.