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Design, build and operate (DBO) meaning

What does Design, build and operate (DBO) mean?
Design, build and operate (DBO) is a procurement model under which one contractor designs and builds an asset, then operates it for an agreed term (often 10–30 years). Operations (O&M) typically include maintenance and lifecycle renewal to specified performance and availability standards. DBO is an industry term, not one generally defined by legislation or case law. It is used consistently across England and Wales, Scotland, Northern Ireland and Ireland in both public and private infrastructure projects. Where a public body procures a DBO contract, the process must comply with applicable public procurement law (for example, the Public Contracts Regulations 2015 and the Scottish, Northern Irish and Irish equivalents). Key legal features commonly include: single-point responsibility for design, construction and operations; performance-linked payment mechanisms; allocation of design, construction, operational and lifecycle risk to the contractor; handback and asset condition obligations at expiry; collateral warranties or performance security; step-in rights; and change in law provisions. TUPE/ARD issues may arise on commencement, retender or expiry where operations transfer. A DBO can be used within PPP/PFI-style arrangements or as a standalone contract; unlike DBFO/DBFM models, private finance is not inherent to DBO.
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View the related Flowcharts about Design, build and operate (DBO)

FLOWCHARTS
SDLT rate decision flowchart for residential, non-residential and mixed-use property acquisitions (England and Northern Ireland), including 2% non-resident surcharge

This diagram sets out how interim payments operate under the JCT Design and Build Contract 2016. See Practice Note: JCT contracts—price and payment...

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View the related Practice Notes about Design, build and operate (DBO)

PRACTICE NOTES
Design–Build–Operate contracts for public infrastructure: structure, procurement, key terms, tendering, advantages, drawbacks and risk allocation

Design Build Operate (DBO) Rising demand for public infrastructure during periods of tight public finances, coupled with limited public sector expertise in delivering complex facilities (such as water treatment works and energy plants), has prompted greater private sector involvement in the procurement and operation of public infrastructure. There are numerous possible frameworks for bringing public sector risk and expertise into the procurement of public infrastructure, covering a wide spectrum of structures. One such arrangement is Design Build Operate (DBO). It is especially popular for water treatment plants. For information on variations of the DBO structure, see Practice Notes: Infrastructure projects—project structure and BOT contracts. Under DBO, a government (often through a government body or local authority) engages a single contractor to: design and construct the infrastructure facility operate the facility for a period (typically between 10–30 years) The government typically funds the infrastructure project, either via tax revenues, grants (eg from international development funds) or debt finance arrangements, and pays the...

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PRACTICE NOTES
Construction contracts glossary—D: design and build, delay, defects, payment notices, dispute processes, dutyholders

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z D&B See Design and build beneath. DBO See Design, build and operate beneath. Date for completion/completion date Means the date stated therein in the building contract (typically within the contract particulars/contract data) by which the contractor must finish the works—ie the point by which practical completion is to be achieved (see Practice Note: What is practical completion?). This completion date may change over the course of the project, for instance where the contractor receives an extension of time. Should the works not be completed by the completion date, the contractor is liable to the employer for liquidated damages (where the contract so provides) or, failing that, general damages for delay in completion (arising from breach of contract thereunder). Date for possession The date set out in the building contract on which the employer gives...

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PRACTICE NOTES
SIAC Arbitration Rules 2025: Early Dismissal of Claims and Defences (r 47) and Preliminary Determination (r 46)—procedure, thresholds, timelines and Singapore court guidance (DBO v DBP)

This Practice Note is prepared in collaboration with Ms Koh Swee Yen, Senior Counsel and Partner, Mr Joel Quek, Partner, Ms Magdalene Ong, Partner, Ms Divya Harchandani, Foreign Lawyer, and Ms Thea Elyssa Vega, Foreign Lawyer, all from WongPartnership LLP, Singapore. The 7th Edition of the SIAC Rules took effect on 1 January 2025 and can be accessed here, notably. This Practice Note reviews the early dismissal of claims and defences under the Arbitration Rules of the Singapore International Arbitration Centre (SIAC) (7th Edition) 2025 (2025 SIAC Rules) herein. The 2025 SIAC Rules govern arbitrations commenced on or after 1 January 2025, unless the parties have agreed to the contrary. Early dismissal under the 2025 SIAC Rules, r 47 SIAC was among the earliest leading international commercial arbitration institutions indeed to adopt a process for the early dismissal of claims and defences. When first introduced in the SIAC Rules 2016, the purpose of the provision was to cut time and costs in matters where the claims or defences...

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