Daily Point 2252 - DBO (Design, Build, Operate)

 

The Banking Tutor

Daily Point 2252 

DBO (Design, Build, Operate) 

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. 

Sekhar Pariti

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