Build, own, operate and transfer (BOOT)
A build, own, operate and transfer (BOOT) contract is a project delivery model that can be used for large projects developed through Public Private Partnerships (PPPs). The term 'Public Private Partnerships' refers to a very broad range of partnerships in which the public and private sectors collaborate for some mutual benefit.
Under a BOOT contract, a private organisation undertakes to complete a large project, such as a complex infrastructure project, which they are granted a concession to finance and build 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 private organisation is then granted the right to own, maintain and operate the project for a set period of time, during which they can draw fees from users of the asset. Once the time period has elapsed, the control of the project transfers 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.
There are a number of other, related forms of procurement, which allocate rights and responsibilities differently:
- Build, operate, transfer (BOT), whereby the private organisation does not own the project as an asset, they merely receive a concession to operate it for a period of time.
- Build lease transfer (BLT), in which the public sector partner leases the project from the contractor and also takes responsibility for its operation.
- Design, build, finance and operate (DBFO), which also assigns the design responsibility to the private organisation.
For more information see: Procurement routes.
[edit] Related articles on Designing Buildings Wiki
- Build lease transfer BLT.
- Complex project.
- Concession.
- Concession agreement.
- Design build finance and operate.
- Design Build Finance Transfer (DBFT).
- Design build operate (DBO).
- Design build operate maintain DBOM.
- Major Projects Authority.
- PFI vs PPP.
- Private Finance Initiative.
- Procurement route.
- Public Private Partnership.
- Public procurement.
- Renovate, operate, transfer (ROT).
- Risk allocation.
Featured articles and news
The hidden price of infrastructure.
BREEAM incorporates wellbeing into its Building Back Better programme.
President Biden commits to clean energy
Administration signals policy changes on some building-related issues.
From inns and coaching houses to boutiques.
Survey reveals green skills gap.
America's economic collapse produced scores of PWA Moderne projects.
The benefits of glowing aggregates and cement.
Rising concern over construction worker wellbeing
Urgent need for open communication to address mental health issues.
New engineering alliance forms
Guidance offered on COVID-19 green recovery, building safety and more.
Providing strength and support above the joists.
Construction Products Regulator
Enforcer will test and investigate product safety.