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
Buildings that changed the future of architecture. Book review.
The Sustainability Pathfinder© Handbook
Built environment agency launches free Pathfinder© tool to help businesses progress sustainability strategies.
Government outcome to the late payment consultation, ECA reacts.
IHBC 2025 Gus Astley Student Award winners
Work on the role of hewing in UK historic conservation a win for Jack Parker of Oxford Brookes University.
Future Homes Building Standards and plug-in solar
Parts F and L amendments, the availability of solar panels and industry responses.
How later living housing can help solve the housing crisis
Unlocking homes, unlocking lives.
Preparing safety case reports for HRBs under the BSA
A new practical guide to preparing structural inputs for safety cases and safety case reports published by IStructE.
Male construction workers and prostate cancer
CIOB and Prostate Cancer UK encourage awareness of prostate cancer risks, and what to do about it.
The changed R&D tax landscape for Architects
Specialist gives a recap on tax changes for Research and Development, via the ACA newsletter.
Structured product data as a competitive advantage
NBS explain why accessible product data that works across digital systems is key.
Welsh retrofit workforce assessment
Welsh Government report confirms Wales faces major electrical skills shortage, warns ECA.
A now architectural practice looks back at its concept project for a sustainable oceanic settlement 25 years on.
Copyright and Artificial Intelligence
Government report and back track on copyright opt out for AI training but no clear preferred alternative as yet.
Embedding AI tools into architectural education
Beyond the render: LMU share how student led research is shaping the future of visualisation workflows.
Why document control still fails UK construction projects
A Chartered Quantity Surveyor explains what needs to change and how.
Inspiration for a new 2026 wave of Irish construction professionals.
New planning reforms and Warm Homes Bill
Take centre stage at UK Construction Week London.