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
Building Safety recap January, 2026
What we missed at the end of last year, and at the start of this...
National Apprenticeship Week 2026, 9-15 Feb
Shining a light on the positive impacts for businesses, their apprentices and the wider economy alike.
Applications and benefits of acoustic flooring
From commercial to retail.
From solid to sprung and ribbed to raised.
Strengthening industry collaboration in Hong Kong
Hong Kong Institute of Construction and The Chartered Institute of Building sign Memorandum of Understanding.
A detailed description fron the experts at Cornish Lime.
IHBC planning for growth with corporate plan development
Grow with the Institute by volunteering and CP25 consultation.
Connecting ambition and action for designers and specifiers.
Electrical skills gap deepens as apprenticeship starts fall despite surging demand says ECA.
Built environment bodies deepen joint action on EDI
B.E.Inclusive initiative agree next phase of joint equity, diversity and inclusion (EDI) action plan.
Recognising culture as key to sustainable economic growth
Creative UK Provocation paper: Culture as Growth Infrastructure.
Futurebuild and UK Construction Week London Unite
Creating the UK’s Built Environment Super Event and over 25 other key partnerships.
Welsh and Scottish 2026 elections
Manifestos for the built environment for upcoming same May day elections.
Advancing BIM education with a competency framework
“We don’t need people who can just draw in 3D. We need people who can think in data.”
Guidance notes to prepare for April ERA changes
From the Electrical Contractors' Association Employee Relations team.
Significant changes to be seen from the new ERA in 2026 and 2027, starting on 6 April 2026.
First aid in the modern workplace with St John Ambulance.
Solar panels, pitched roofs and risk of fire spread
60% increase in solar panel fires prompts tests and installation warnings.
Modernising heat networks with Heat interface unit
Why HIUs hold the key to efficiency upgrades.