Design build operate maintain DBOM - Revision history

Editor at 20:35, 30 December 2020

2020-12-30T20:35:12Z

← Older revision		Revision as of 20:35, 30 December 2020
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	* Public procurement.		* Public procurement.
	* Renovate, operate, transfer (ROT).		* Renovate, operate, transfer (ROT).
		+	* Shadow tolls.

	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 15:15, 30 December 2020

2020-12-30T15:15:10Z

← Older revision		Revision as of 15:15, 30 December 2020
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	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

		+	* Availability payments.
	* Build, own, operate and transfer (BOOT).		* Build, own, operate and transfer (BOOT).
	* Design and build.		* Design and build.

Editor at 17:54, 17 December 2020

2020-12-17T17:54:29Z

← Older revision		Revision as of 17:54, 17 December 2020
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	* Design and build - pros and cons.		* Design and build - pros and cons.
	* Design, build, finance, maintain DBFM.		* Design, build, finance, maintain DBFM.
		+	* Design Build Finance Operate Maintain DBFOM.
	* Design build operate (DBO).		* Design build operate (DBO).
	* Government Construction Strategy.		* Government Construction Strategy.

Editor at 18:36, 15 December 2020

2020-12-15T18:36:19Z

← Older revision		Revision as of 18:36, 15 December 2020
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	* Design and build.		* Design and build.
	* Design and build - pros and cons.		* Design and build - pros and cons.
		+	* Design, build, finance, maintain DBFM.
	* Design build operate (DBO).		* Design build operate (DBO).
	* Government Construction Strategy.		* Government Construction Strategy.

Editor at 17:52, 28 August 2020

2020-08-28T17:52:30Z

← Older revision		Revision as of 17:52, 28 August 2020
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	* Renovate, operate, transfer (ROT).		* Renovate, operate, transfer (ROT).

−	[[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 21:00, 4 June 2020

2020-06-04T21:00:06Z

← Older revision		Revision as of 21:00, 4 June 2020
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	* Public Private Partnership.		* Public Private Partnership.
	* Public procurement.		* Public procurement.
		+	* Renovate, operate, transfer (ROT).

	[[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 11:24, 8 November 2019

2019-11-08T11:24:02Z

Editor at 16:33, 20 September 2019

2019-09-20T16:33:29Z

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	\| [[File:Hs2.jpg\|link=File:Hs2.jpg]]		\| [[File:Hs2.jpg\|link=File:Hs2.jpg]]
	\|}		\|}
		+
		+	= Outline =

	Design build operate maintain (DBOM, also referred to as ‘turnkey’ procurement and ‘build-operate-transfer’) is a variation of the classic design and build method of procurement in which the main contractor is appointed to design and construct the works. This contrasts with the traditional procurement route, where the client first appoints consultants to design the development and then appoints a contractor to construct the works.		Design build operate maintain (DBOM, also referred to as ‘turnkey’ procurement and ‘build-operate-transfer’) is a variation of the classic design and build method of procurement in which the main contractor is appointed to design and construct the works. This contrasts with the traditional procurement route, where the client first appoints consultants to design the development and then appoints a contractor to construct the works.

Editor at 16:32, 20 September 2019

2019-09-20T16:32:27Z

← Older revision		Revision as of 16:32, 20 September 2019
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	{\|		{\|
−	\| [[File:Hs2.jpg]]	+	\| [[File:Hs2.jpg\|link=File:Hs2.jpg]]
	\|}		\|}

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	== Advantages of DBOM ==		== Advantages of DBOM ==

−	~~<ul>~~	+	* A single source of responsibility for usually disparate functions of design, construction and maintenance.
−	~~<li>~~A single source of responsibility for usually disparate functions of design, construction and maintenance.~~</li>~~	+	* DBOM contractor can establish a long-term maintenance programme up-front, plus estimated costs.
−	~~<li>~~DBOM contractor can establish a long-term maintenance programme up-front, plus estimated costs.~~</li>~~	+	* Knowledge of methods and materials to be used allows the DBOM contractor to develop a tailored maintenance plan that anticipates and addresses potential issues thereby reducing risk and costs.
−	~~<li>~~Knowledge of methods and materials to be used allows the DBOM contractor to develop a tailored maintenance plan that anticipates and addresses potential issues thereby reducing risk and costs.~~</li>~~	+	* Relieves government agency (owner) of time and trouble spent on operational and maintenance issues.
−	~~<li>~~Relieves government agency (owner) of time and trouble spent on operational and maintenance issues.~~</li>~~	+	* Integrated DBOM approach can bring substantial rewards to government agency / owner.
−	~~<li>~~Integrated DBOM approach can bring substantial rewards to government agency / owner.~~</li>~~	+
−	~~<li>~~== Disadvantages of DBOM ==	+	== Disadvantages of DBOM ==
−	~~</li>~~	+
−	~~<li>~~Needs must be specified up front to enable correct specifications to be drawn up.~~</li>~~	+	* Needs must be specified up front to enable correct specifications to be drawn up.
−	~~<li>~~Owners lose much of the control they usually have with traditional contracts.~~</li>~~	+	* Owners lose much of the control they usually have with traditional contracts.
−	~~<li>~~Great care is needed to ensure correct standards are specified for design, construction and maintenance, especially if owners are not accustomed to the process~~</li>~~	+	* Great care is needed to ensure correct standards are specified for design, construction and maintenance, especially if owners are not accustomed to the process
−	~~<li>~~Much risk is placed on the contractor but this is usually reflected in its price.~~</li></ul>~~	+	* Much risk is placed on the contractor but this is usually reflected in its price.

	= Availability payments and shadow tolls =		= Availability payments and shadow tolls =
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	* Public Private Partnership.		* Public Private Partnership.
	* Public procurement.		* Public procurement.
		+
		+	[[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor: Created page with "{| | File:Hs2.jpg |} Design build operate maintain (DBOM, also referred to as ‘turnkey’ procurement and ‘build-operate-transfer’) is a variation of the classic desig..."

2019-09-20T16:31:21Z

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Design build operate maintain (DBOM, also referred to as ‘turnkey’ procurement and ‘build-operate-transfer’) is a variation of the classic design and build method of procurement in which the main contractor is appointed to design and construct the works. This contrasts with the traditional procurement route, where the client first appoints consultants to design the development and then appoints a contractor to construct the works.

Many types of project can be procured through DBOM, including shopping centres, motorways and toll roads, tunnels and other infrastructure. In DBOM, in addition to being responsible for design, planning, organisation, control and construction of the works to the employer’s requirements, the contractor is also responsible for operating and maintaining the facility. The operation and maintenance period is likely to span 20, 25 or 30 years during which the contractor is said to have the ‘concession’ and is responsible for the safe and smooth operation of the facility.

With operational responsibility comes a share of the operational profits. However, despite being entitled to possibly the lion’s share of the operational profits, the structure itself remains the property of the government agency (owner). In the case of infrastructure that does not produce operational income eg a non-toll motorway or road tunnel, the contractor is paid fees by the government in the form of availability payments or shadow tolls (see below).

DBOM is usually applied to infrastructure projects such as shopping and leisure centres, light rail, motorways, tunnels, bridges and other infrastructure. DBOM contracts are typically awarded by owners through competitive bidding under a transparent tender process. Projects are procured from the private sector in a single contract while works are financed by the government. This is why DBOM contracts are also public private partnerships (PPP, 3P or P3).

As work progresses, the government pays the contractor for undertaking the works; maintenance is also paid for by the government at an agreed price. At the end of the agreed maintenance and operation period, the contract may be renewed or the responsibility for operation and maintenance reverts to the government agency. Whether the contract is subject to renewal is usually stated at tender stage.

== Advantages of DBOM ==

<ul>
<li>A single source of responsibility for usually disparate functions of design, construction and maintenance.</li>
<li>DBOM contractor can establish a long-term maintenance programme up-front, plus estimated costs.</li>
<li>Knowledge of methods and materials to be used allows the DBOM contractor to develop a tailored maintenance plan that anticipates and addresses potential issues thereby reducing risk and costs.</li>
<li>Relieves government agency (owner) of time and trouble spent on operational and maintenance issues.</li>
<li>Integrated DBOM approach can bring substantial rewards to government agency / owner.</li>
<li>== Disadvantages of DBOM ==
</li>
<li>Needs must be specified up front to enable correct specifications to be drawn up.</li>
<li>Owners lose much of the control they usually have with traditional contracts.</li>
<li>Great care is needed to ensure correct standards are specified for design, construction and maintenance, especially if owners are not accustomed to the process</li>
<li>Much risk is placed on the contractor but this is usually reflected in its price.</li></ul>

= Availability payments and shadow tolls =

With availability payments, the government must pay the contractor the same fees whether the facility is used or not. Such projects are therefore risky for governments to embark upon but may nevertheless be in the public interest.

Shadow tolls are applied where, for whatever reason, there are no tolls exacted on the project in which case the government agency pays the operator a per-vehicle amount as compensation for it operating and maintaining the facility.

= Related articles on Designing Buildings Wiki =

* Build, own, operate and transfer (BOOT).
* Design and build.
* Design and build - pros and cons.
* Design build operate (DBO).
* Government Construction Strategy.
* Infrastructure UK.
* PF2.
* Procurement route.
* Private Finance Initiative.
* Public Private Partnership.
* Public procurement.

← Older revision		Revision as of 11:24, 8 November 2019
Line 7:		Line 7:
	Design build operate maintain (DBOM, also referred to as ‘turnkey’ procurement and ‘build-operate-transfer’) is a variation of the classic design and build method of procurement in which the main contractor is appointed to design and construct the works. This contrasts with the traditional procurement route, where the client first appoints consultants to design the development and then appoints a contractor to construct the works.		Design build operate maintain (DBOM, also referred to as ‘turnkey’ procurement and ‘build-operate-transfer’) is a variation of the classic design and build method of procurement in which the main contractor is appointed to design and construct the works. This contrasts with the traditional procurement route, where the client first appoints consultants to design the development and then appoints a contractor to construct the works.

−	~~Many types of project can be procured through DBOM, including shopping centres, motorways and toll roads, tunnels and other infrastructure.~~ In DBOM, in addition to being responsible for design~~, planning, organisation, control~~ and construction of the works to the employer’s requirements, the contractor is also responsible for operating and maintaining the facility. The operation and maintenance period ~~is likely to~~ span 20~~, 25 or~~ 30 years during which the contractor is said to have the ‘concession’ and is responsible for the safe and smooth operation of the facility.	+	In DBOM, in addition to being responsible for the design and construction of the works to the employer’s requirements, the contractor is also responsible for operating and maintaining the completed facility. The operation and maintenance period can span as much as 20 to 30 years during which the contractor is said to have the ‘concession’ and is responsible for the safe and smooth operation of the facility, and may benefit from operational income. The facility itself however remains the property of the employer.

−	With operational responsibility comes a share of the operational profits. However, despite being entitled to possibly the lion’s share of the operational profits, the structure itself remains the property of the government agency (owner). In the case of infrastructure that does not produce operational income eg a non-toll motorway ~~or road tunnel~~, the contractor is paid fees by the ~~government~~ in the form of availability payments or shadow tolls (see below).	+	In the case of infrastructure that does not produce operational income, such as a non-toll motorway, the contractor is paid fees by the employer in the form of availability payments or shadow tolls (see below).

−	DBOM is ~~usually applied to infrastructure~~ projects such as shopping and leisure centres, light rail, motorways, tunnels, bridges and other infrastructure. DBOM contracts are typically awarded ~~by owners~~ through competitive bidding under a transparent tender process. Projects are procured from the private sector in a single contract while works are financed by the government. ~~This is why~~ DBOM contracts are ~~also~~ public private partnerships (PPP~~, 3P or P3~~).	+	DBOM is commonly used for projects such as shopping and leisure centres, light rail, motorways, tunnels, bridges and other infrastructure. DBOM contracts are typically awarded through competitive bidding under a transparent tender process. Projects are procured from the private sector in a single contract while works are typically financed by the government (although employers can also be from the private sector). DBOM contracts are commonly a form of public private partnerships (PPP).

−	As work progresses, the ~~government~~ pays the contractor for undertaking the works; maintenance is also paid for by the ~~government~~ at an agreed price. At the end of the agreed maintenance and operation period, the contract may be renewed or the responsibility for operation and maintenance ~~reverts~~ to ~~the government agency~~. Whether the contract is subject to renewal is usually stated at tender stage.	+	As work progresses, the employer pays the contractor for undertaking the works; maintenance is also paid for by the employer at an agreed price. At the end of the agreed maintenance and operation period, the contract may be renewed or the responsibility for operation and maintenance may revert to employer. Whether the contract is subject to renewal is usually stated at tender stage.

−	== Advantages ~~of DBOM ==~~	+	= Pros and cons =
		+
		+	Advantages include:

	* A single source of responsibility for usually disparate functions of design, construction and maintenance.		* A single source of responsibility for usually disparate functions of design, construction and maintenance.
−	* DBOM contractor can establish a long-term maintenance programme up-front, plus estimated costs.	+	* The DBOM contractor can establish a long-term maintenance programme up-front, plus estimated costs.
	* Knowledge of methods and materials to be used allows the DBOM contractor to develop a tailored maintenance plan that anticipates and addresses potential issues thereby reducing risk and costs.		* Knowledge of methods and materials to be used allows the DBOM contractor to develop a tailored maintenance plan that anticipates and addresses potential issues thereby reducing risk and costs.
−	* ~~Relieves government agency (~~owner) of time and trouble spent on operational and maintenance issues.	+	* It relieves the owner of the time and trouble spent on operational and maintenance issues.
−	* Integrated DBOM approach can bring substantial rewards to government agency / owner.	+

−	== Disadvantages of DBOM ==	+	Disadvantages of DBOM include:

−	* ~~Needs~~ must be specified up front to enable correct specifications to be drawn up.	+	* Long term needs must be specified up front to enable correct specifications to be drawn up.
	* Owners lose much of the control they usually have with traditional contracts.		* Owners lose much of the control they usually have with traditional contracts.
	* Great care is needed to ensure correct standards are specified for design, construction and maintenance, especially if owners are not accustomed to the process		* Great care is needed to ensure correct standards are specified for design, construction and maintenance, especially if owners are not accustomed to the process
	* Much risk is placed on the contractor but this is usually reflected in its price.		* Much risk is placed on the contractor but this is usually reflected in its price.
		+	* Prices can turn out to be excessive in the long term (see PFI for more information)

	= Availability payments and shadow tolls =		= Availability payments and shadow tolls =

−	With availability payments, the ~~government~~ must pay the contractor the same fees whether the facility is used or not. Such projects are therefore risky ~~for governments~~ to embark upon but may nevertheless be in the ~~public~~ interest.	+	With availability payments, the employer must pay the contractor the same fees whether the facility is used or not. Such projects are therefore risky to embark upon but may nevertheless be in the employer's interest.

−	Shadow tolls are applied where, for whatever reason, there are no tolls exacted on the project in which case the ~~government agency~~ pays the operator a per-vehicle amount as compensation for it operating and maintaining the facility.	+	Shadow tolls are applied where, for whatever reason, there are no tolls exacted on the project in which case the employer pays the operator a per-vehicle amount as compensation for operating and maintaining the facility.

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =