The FIDIC Conditions of Contract for Design, Build and Operate Projects (the “DBO Contract”) is a comprehensive document that governs the relationships between the owner, the design-builder, and the operator of a facility. This article aims to provide an overview of what the DBO Contract entails and highlight its significance in the construction industry.
The DBO Contract is the first comprehensive set of standard form contracts for the delivery of projects using a design-build-operate (DBO) approach. DBO is a procurement method where a single entity is responsible for the entire project lifecycle, from design and construction to operation and maintenance. This approach provides a single point of responsibility and is often used for large-scale infrastructure projects such as airports, highways, and power plants.
The DBO Contract is divided into 20 clauses, each addressing a specific aspect of the project. The first clause sets out the general obligations of the parties, while subsequent clauses address issues such as design, construction, testing and commissioning, maintenance, and operation of the facility. The contract also includes provisions for dispute resolution and termination.
One of the key features of the DBO Contract is that it includes a performance guarantee, which requires the design-builder to provide a performance bond or other security to ensure that the facility will operate as intended for a specified period. This ensures that the owner of the facility is protected against any defects or deficiencies that may arise during the lifecycle of the project.
Furthermore, the DBO Contract is designed to give the owner greater control over the quality of the construction and operation of the facility. The design-builder is required to meet certain performance criteria and is subject to regular inspections and audits during the operation phase of the project. This helps ensure that the owner receives a quality facility that operates in a safe and efficient manner.
In summary, the FIDIC Conditions of Contract for Design, Build and Operate Projects first edition 2008 is a comprehensive document that provides a framework for the delivery of projects using the DBO approach. It ensures that the facility owner receives a quality facility that operates in a safe and efficient manner. The inclusion of a performance guarantee and provisions for dispute resolution and termination make the DBO Contract an essential tool for construction professionals. Overall, the DBO Contract is a fundamental document in the construction industry and has become widely accepted as the standard form of contract for DBO projects.