Design build finance transfer (DBFT) - Revision history

Editor at 17:15, 9 March 2021

2021-03-09T17:15:46Z

← Older revision		Revision as of 17:15, 9 March 2021
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	* Build lease transfer BLT.		* Build lease transfer BLT.
		+	* Build operate transfer BOT.
	* Build, own, operate and transfer (BOOT).		* Build, own, operate and transfer (BOOT).
	* Carillion.		* Carillion.

Editor at 18:35, 15 December 2020

2020-12-15T18:35:50Z

← Older revision		Revision as of 18:35, 15 December 2020
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	* Design and build.		* Design and build.
	* Design build finance and operate.		* Design build finance and operate.
		+	* Design, build, finance, maintain DBFM.
	* Design build operate (DBO).		* Design build operate (DBO).
	* Design build operate maintain DBOM.		* Design build operate maintain DBOM.

Editor at 16:17, 15 December 2020

2020-12-15T16:17:17Z

← Older revision		Revision as of 16:17, 15 December 2020
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	= PPP and PFI =		= PPP and PFI =

−	DBFT is often used for large projects (such as those involving infrastructure), which are developed through Public Private Partnerships (PPPs). Public Private Partnership refers to a very broad range of partnerships in which the public and private sectors collaborate for some mutual benefit. PPPs can cover a range of partnerships to deliver services, buildings or infrastructure for central or local government. For more information see: Public Private Partnership	+	DBFT is often used for large projects (such as those involving infrastructure), which are developed through Public Private Partnerships (PPPs). Public Private Partnership refers to a very broad range of partnerships in which the public and private sectors collaborate for some mutual benefit. PPPs can cover a range of partnerships to deliver services, buildings or infrastructure for central or local government. For more information see: Public Private Partnership.

	Private Finance Initiative (PFI) is a commonly used form of PPP. PFI is one of the three procurement routes favoured by the Government Construction Strategy for central civil government projects. The risk associated with PFI projects is transferred to the building contractors, and operating companies may charge high prices in return. This type of financing is both attractive and controversial, since PFI projects do not appear on the balance sheet of public entities. For more information see: Private Finance Initiative.		Private Finance Initiative (PFI) is a commonly used form of PPP. PFI is one of the three procurement routes favoured by the Government Construction Strategy for central civil government projects. The risk associated with PFI projects is transferred to the building contractors, and operating companies may charge high prices in return. This type of financing is both attractive and controversial, since PFI projects do not appear on the balance sheet of public entities. For more information see: Private Finance Initiative.

Editor at 17:42, 28 August 2020

2020-08-28T17:42:59Z

← Older revision		Revision as of 17:42, 28 August 2020
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	* Design build operate (DBO).		* Design build operate (DBO).
	* Design build operate maintain DBOM.		* Design build operate maintain DBOM.
		+	* Design Build Operate Transfer DBOT.
	* Employer's requirements.		* Employer's requirements.
	* PFI vs PPP.		* PFI vs PPP.

Editor at 17:42, 28 August 2020

2020-08-28T17:42:28Z

← Older revision		Revision as of 17:42, 28 August 2020
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	* [https://publications.parliament.uk/pa/ld200910/ldselect/ldeconaf/63/63i.pdf Private Finance Projects and off-balance sheet debt], published by the House of Lords, session 2009-2010 (downloadable PDF).		* [https://publications.parliament.uk/pa/ld200910/ldselect/ldeconaf/63/63i.pdf Private Finance Projects and off-balance sheet debt], published by the House of Lords, session 2009-2010 (downloadable PDF).

−	[[Category:~~Articles_needing_more_work~~]] [[Category:~~Definitions~~]] [[Category:~~DCN_Definition~~]] [[Category:Projects_and_case_studies~~]] [[Category:DCN_Project_Knowledge~~]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Definitions]] [[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 16:45, 3 August 2020

2020-08-03T16:45:55Z

← Older revision		Revision as of 16:45, 3 August 2020
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	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

		+	* Build lease transfer BLT.
	* Build, own, operate and transfer (BOOT).		* Build, own, operate and transfer (BOOT).
	* Carillion.		* Carillion.
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	* [https://publications.parliament.uk/pa/ld200910/ldselect/ldeconaf/63/63i.pdf Private Finance Projects and off-balance sheet debt], published by the House of Lords, session 2009-2010 (downloadable PDF).		* [https://publications.parliament.uk/pa/ld200910/ldselect/ldeconaf/63/63i.pdf Private Finance Projects and off-balance sheet debt], published by the House of Lords, session 2009-2010 (downloadable PDF).

−	[[Category:Articles_needing_more_work]] [[Category:Definitions]] [[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:Articles_needing_more_work]] [[Category:Definitions]] [[Category:DCN_Definition]] [[Category:Projects_and_case_studies]] [[Category:DCN_Project_Knowledge]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 06:58, 3 June 2020

2020-06-03T06:58:25Z

← Older revision		Revision as of 06:58, 3 June 2020
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	= Introduction =		= Introduction =

−	Design, build, finance, transfer (DBFT) is a project delivery method that allows one contractor with expertise in design, construction and financing to be appointed to design, construct and arrange financial resources for the works. This is similar to design build finance and operate (DBFO), except that the contractor eventually transfers ownership of the project back to the client.	+	Design, build, finance, transfer (DBFT) is a project delivery method that allows one contractor with expertise in design, construction and financing to be appointed to design, construct and arrange financial resources for the works. This is similar to design build finance and operate (DBFO), except that the contractor eventually transfers ownership of the project back to the client. Variations include: design build operate (DBO), and build, own, operate, transfer (BOOT).

−	~~Variations include: design build operate (DBO), and build, own, operate, transfer (BOOT).~~	+	Design, build, finance, transfer can be attractive to some clients, as it designates a single point of responsibility for delivering the project. However, some clients consider it is only appropriate for more simple projects where design quality is not the main consideration.
−		+
−	Design, build, finance, transfer can be attractive to some clients, as it designates a single point of responsibility for delivering the project. However, some clients consider it is only appropriate for simple projects ~~(as with design build)~~ where design quality is not the main consideration.	+

	= PPP and PFI =		= PPP and PFI =

−	DBFT is often used for large projects (such as those involving infrastructure), which are developed through Public Private Partnerships (PPPs). A Public Private Partnership refers to a very broad range of partnerships in which the public and private sectors collaborate for some mutual benefit. PPPs can cover a range of partnerships to deliver services, buildings or infrastructure~~. Partnerships can be arranged either with the~~ central or local government.	+	DBFT is often used for large projects (such as those involving infrastructure), which are developed through Public Private Partnerships (PPPs). Public Private Partnership refers to a very broad range of partnerships in which the public and private sectors collaborate for some mutual benefit. PPPs can cover a range of partnerships to deliver services, buildings or infrastructure for central or local government. For more information see: Public Private Partnership

−	~~Under this project delivery method, a~~ Private Finance Initiative (PFI) is a commonly used form of PPP. PFI is one of the three procurement routes favoured by the Government Construction Strategy for central civil government projects.	+	Private Finance Initiative (PFI) is a commonly used form of PPP. PFI is one of the three procurement routes favoured by the Government Construction Strategy for central civil government projects. The risk associated with PFI projects is transferred to the building contractors, and operating companies may charge high prices in return. This type of financing is both attractive and controversial, since PFI projects do not appear on the balance sheet of public entities. For more information see: Private Finance Initiative.
−		+
−	The risk associated with PFI projects is transferred to the building contractors, and operating companies may charge high prices in return. This type of financing is both attractive and controversial, since PFI projects do not appear on the balance sheet of public entities.	+

	= How DBFT works =		= How DBFT works =
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	Under a DBFT arrangement, a contractor (the private organisation in a Public Private Partnership) undertakes to complete a project which they are granted a concession to design, build and finance by a public sector partner, typically a government department. The public partner may provide limited funding or other benefits (such as tax exemptions), but the private organisation accepts most of the risks.		Under a DBFT arrangement, a contractor (the private organisation in a Public Private Partnership) undertakes to complete a project which they are granted a concession to design, build and finance by a public sector partner, typically a government department. The public partner may provide limited funding or other benefits (such as tax exemptions), but the private organisation accepts most of the risks.

−	The contractor may use their own in-house designers to design the building, or they can appoint consultant designers. The client's designers can also be employed by the contractor to complete ~~the~~ design.	+	The contractor may use their own in-house designers to design the building, or they can appoint consultant designers. The client's designers can also be employed by the contractor to help complete a design which they have begun (as with a consultant switch or novation on a design and build project).

−	Essential to the design phase is the employer’s requirements. This document, which is prepared by the client, provides a description of how the project should proceed. Employer’s requirements often include the following:	+	Essential to the design phase is the employer’s requirements (ER). This document, which is prepared by the client, provides a description of how the project should proceed. Employer’s requirements often include the following:

	* The specification for the building.		* The specification for the building.
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	The level of detail in the employer's requirements and the extent of design required from the contractor is very variable. Employer's requirements can range from a somewhat simple specification to a fully developed performance specification and concept design.		The level of detail in the employer's requirements and the extent of design required from the contractor is very variable. Employer's requirements can range from a somewhat simple specification to a fully developed performance specification and concept design.
		+
		+	For more information see: Employer's requirements

	Contractor's proposals (CP) are then prepared in response to the employer's requirements. The phrase 'contractor's proposals' (CP) generally refers to documentation prepared by tenderers where the tenderer is to design parts of the works.These present the contractor's suggested approach for designing and constructing the building, along with the comprehensive price for the works.		Contractor's proposals (CP) are then prepared in response to the employer's requirements. The phrase 'contractor's proposals' (CP) generally refers to documentation prepared by tenderers where the tenderer is to design parts of the works.These present the contractor's suggested approach for designing and constructing the building, along with the comprehensive price for the works.

−	As DBFT can result in a long-term relationship between ~~both parties~~, since it is entered into before any design work is undertaken. Consequently, it is extremely important that the client defines their requirements very carefully, in particular the quality that is required and how it will be judged. A great deal of risk is given to the contractor, and the price they offer will reflect this.	+	For more information see: Contractor's proposals.
		+
		+	As DBFT can result in a long-term relationship between the client and contractor, since it is typically entered into before any significant design work is undertaken and can last until completion of construction, which can be many years on a large infrastructure project. Consequently, it is extremely important that the client defines their requirements very carefully, in particular the quality that is required and how it will be judged. A great deal of risk is given to the contractor, and the price they offer will reflect this.

−	Once the project is complete, the private organisation can then transfer the control of the project to the public sector partner, either freely or for a fee that is stipulated in the original contract~~. It is common for the time period to be several decades in the case of big infrastructure projects that carry a lot of construction and operational risk~~.	+	Once the project is complete, the private organisation can then transfer the control of the project to the public sector partner, either freely or for a fee that is stipulated in the original contract.

	= Applications =		= Applications =

−	~~Suitable applications for DBFT project delivery could be infrastructure projects that require little to no maintenance or servicing.~~ One example of this procurement method is ~~a 2006~~ rail upgrade project undertaken on behalf of Chiltern Railways. Known as Evergreen 2, this project added two platforms on the old carriage sidings at Marylebone Station, London. It was delivered under a DBFT arrangement between Carillion Construction Ltd (as the overseeing contractor) and Sumitomo Mitsui Banking Corp Europe Ltd (as the provider of financing).	+	One example of this procurement method is the rail upgrade project undertaken on behalf of Chiltern Railways. Known as Evergreen 2, this project added two platforms to the old carriage sidings at Marylebone Station, London. It was delivered under a DBFT arrangement between Carillion Construction Ltd (as the overseeing contractor) and Sumitomo Mitsui Banking Corp Europe Ltd (as the provider of financing).

	Once completed, the assets were purchased by Network Rail and then added to their Regulatory Asset Base. The project was completed in two years and was the first of its kind in the rail industry.		Once completed, the assets were purchased by Network Rail and then added to their Regulatory Asset Base. The project was completed in two years and was the first of its kind in the rail industry.
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	* Build, own, operate and transfer (BOOT).		* Build, own, operate and transfer (BOOT).
−	* Contractor's proposals ~~for building design and construction~~.	+	* Carillion.
		+	* Contractor's proposals.
	* Design and build.		* Design and build.
	* Design build finance and operate.		* Design build finance and operate.
	* Design build operate (DBO).		* Design build operate (DBO).
	* Design build operate maintain DBOM.		* Design build operate maintain DBOM.
−	* Employer's requirements ~~for building design and construction~~.	+	* Employer's requirements.
	* PFI vs PPP.		* PFI vs PPP.
	* Private Finance Initiative.		* Private Finance Initiative.

Editor at 17:00, 2 June 2020

2020-06-02T17:00:44Z

← Older revision		Revision as of 17:00, 2 June 2020
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	* [https://publications.parliament.uk/pa/ld200910/ldselect/ldeconaf/63/63i.pdf Private Finance Projects and off-balance sheet debt], published by the House of Lords, session 2009-2010 (downloadable PDF).		* [https://publications.parliament.uk/pa/ld200910/ldselect/ldeconaf/63/63i.pdf Private Finance Projects and off-balance sheet debt], published by the House of Lords, session 2009-2010 (downloadable PDF).

−	[[Category:Definitions]] [[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:Articles_needing_more_work]] [[Category:Definitions]] [[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 16:56, 2 June 2020

2020-06-02T16:56:03Z

← Older revision		Revision as of 16:56, 2 June 2020
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	* Design build operate maintain DBOM.		* Design build operate maintain DBOM.
	* Employer's requirements for building design and construction.		* Employer's requirements for building design and construction.
−	* Major Projects Authority.
	* PFI vs PPP.		* PFI vs PPP.
	* Private Finance Initiative.		* Private Finance Initiative.

Editor: moved Design Build Finance Transfer (DBFT) to Design build finance transfer (DBFT)

2020-06-02T16:54:49Z

moved Design Build Finance Transfer (DBFT) to Design build finance transfer (DBFT)

← Older revision

Revision as of 16:54, 2 June 2020