SPONSORS

SPONSORS

Comparison of Design Bid Build and Design Build Finance Operate Maintain Project Delivery

FEATURED PAPER

By Bob Prieto

USA
________________________________________________________________________

Design Bid Build (DBB) and Design Build Finance Operate Maintain (DBFOM) project delivery differ in significant ways as shown in the table at the end of this article. In simplest terms, under DBB, the owner retains significant interface risk between the designer and builder and in multi-prime projects also retains integration risk across the primes as shown in the following figure.

Effectively this is the “white space” risk between each of the contracting parties and is often not adequately considered in project planning, budgeting and schedule development. Multiple parties create difficulties in effective partnering and project performance is adversely impacted if these risks emerge. In all instances the owner is warranting the completeness and accuracy of the design to the contractor thus directly holding this interface risk.

More…

To read entire paper (click here)

About the Author

Bob Prieto

Senior Vice President

Fluor

Bob Prieto is a senior vice president of Fluor, one of the largest, publicly traded engineering and construction companies in the world. He is responsible for strategy for the firm’s Industrial & Infrastructure group which focuses on the development and delivery of large, complex projects worldwide. The group encompasses three major business lines including Infrastructure, with an emphasis on Public Private Partnerships; Mining; and Manufacturing and Life Sciences. Bob consults with owner’s of large engineering & construction capital construction programs across all market sectors in the development of programmatic delivery strategies encompassing planning, engineering, procurement, construction and financing. He is author of “Strategic Program Management” and “The Giga Factor: Program Management in the Engineering and Construction Industry” published by the Construction Management Association of America (CMAA) and “Topics in Strategic Program Management” as well as over 400 other papers and presentations.

Bob is a member of the ASCE Industry Leaders Council, National Academy of Construction and a Fellow of the Construction Management Association of America. Bob served until 2006 as one of three U.S. presidential appointees to the Asia Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC), working with U.S. and Asia-Pacific business leaders to shape the framework for trade and economic growth and had previously served as both as Chairman of the Engineering and Construction Governors of the World Economic Forum and co-chair of the infrastructure task force formed after September 11th by the New York City Chamber of Commerce.

Previously, he established a 20-year record of building and sustaining global revenue and earnings growth as Chairman at Parsons Brinckerhoff (PB), one of the world’s leading engineering companies.  Bob Prieto can be contacted at [email protected].