Design build operate (DBO)
A design build operate (DBO) contract is a project delivery model in which a single contractor is appointed to design and build a project and then to operate it for a period of time.
The common form of such a contract is a public private partnership (PPP), in which a public client (e.g. government or public agency) enters into a contract with a private contractor to design, build and then operate the project, while the client finances the project and retains ownership.
This differs from a design build finance and operate (DBFO) contract in which the contractor also finances the project and leases it to the client for an agreed period (perhaps 30 years) after which the development reverts to the client.
It also differs from the traditional design and build contract in that it includes operation and maintenance of the completed works, which means that the contractor’s duties and responsibilities to the client do not end at final acceptance but continue through a defined operational term.
In theory, this encourages the contractor to develop a project with its long-term performance in mind from the outset, rather than just considering the efficiency of its construction, as the contractor will be responsible for any high operating, maintenance or repairs bills. However, it ties both the client and the contractor into a very long-term relationship that can be difficult to price. As a result, contractors may price considerable risk into their tenders, and so the client may not always achieve a best value outcome.
NEC4 Design, Build and Operate Contract (DBO) was released in 2017. This is not only intended for the 'traditional' DBO approach, but is also available for situations in which a client wants to have an existing facility or asset operated by the contractor while it is being upgraded or extended.
[edit] Related articles on Designing Buildings Wiki
- Build lease transfer BLT.
- Build, own, operate and transfer (BOOT).
- Complex project.
- Construction contractor.
- Construction management.
- Design and build.
- Design and build - pros and cons.
- Design build finance and operate.
- Design Build Finance Transfer (DBFT).
- Design build operate maintain DBOM.
- Integrated project delivery (IPD).
- Major project construction contract.
- NEC4 Design, Build and Operate Contract.
- Private Finance Initiative.
- Procurement route.
- Public Private Partnership.
- Public procurement.
- Renovate, operate, transfer (ROT).
- Risk allocation.
Featured articles and news
Or are you capping.
STEM ambassadors needed for ICE CityZen award.
Digital gaming competition for UK students aged 16 to 18.
Heritage protection in England vs Australia.
Fire doors and the Fire Door Inspection Scheme.
Three-quarters of fire doors fail inspections
UN International Day for Biological Diversity, May 22.
The role of geoparks, biospheres and world heritage sites.
BSRIA conference 2022, June 23.
Just one month to go ! Find out more here.
Restoring Broadbent’s Bath House
A new gallery for the University of Huddersfield.
Corruption in the construction industry.
What will it take to stop it ?
To celebrate world bee day 2022 !
Just one month until the changes to part L come into effect.
Not forgetting part F and the new part overheating part O.
Heat Pump demand rises by one quarter.
As energy prices jump up in cost.
With people in the UK from Ukraine.
Industry leader Steve Murray takes on role.
An abundant and versatile building material.
How overheating complicates ending gas in the UK.
600,000 heat pump installations targeted per year by 2028.
Cost planning, control and related articles on DB.
Helping prevent those unwanted outcomes.
ICE debate Public transport - post pandemic.
How has transport changed due to Covid-19 ?
Cross-ventilation in buildings. Do you have it ?
Will you need it ? after June 15 and the new Part O ?
Share your knowledge with the industry.
Create an account and write the first of many articles.
The green jobs delivery group.
CIAT commentary after the first meeting.
Liverpool's world heritage site status
Who is to blame?
Research recommends focussing on portfolio success rather than project success.