THE FUTURE - DBO

• • • • • DBO - Design-Build Operate Contract Launched on 13 september 2008 Reveals the direction FIDIC is looking to move Will be known as the “Gold Book” Retains the standard FIDIC 20 clause

construction and longterm operation into one single contract awarded to a single contractor .Why DOB? • To make process • More satisfactory • More uniform • More certain • To combine design .

commitment and other risks will be carried by contractor .so plant will be fit for purpose and built to last long .ADVANTAGES • Overlapping of some design and build activities will minimize delay and smooth the flow of operations • Cost constraint . so no price overruns • Contractor will be responsible for 20 years .

RISK AND INSURANCE • Clause 17-19 • Set out in much more detailed and precise way • Clause 17 renamed as “Risk allocation” (formerly was “risk and responsibility”) • Clause 19 “force majure” has been dropped and replaced with “Exceptional risk”(clause 18) .

the Contractor is entitled to an extension of time and payment of costs • During operation and service period – contractor will receive only cost .RISK AND INSURANCE(CONTD…) • DOB identifies risk to be borne by each party • Differentiated risk during design-built period and operation service period • During design-built period .

DISPUTE RESOLUTION • Clause 20 refers to contractor’s claim • Contractor must give notice not more than 28 days after it becomes or should have become aware of event • Clause 2.5 refers to employer’s claim • Employer must give notice as soon as practicable after it becomes aware of event .

DISPUTE RESOLUTION(CONTD.4 headed “avoidance of dispute” has been introduced .. that both Employer and Contractor “endeavour to” advise the other of any circumstances of which they are aware which may adversely affect the project • A new clause 20.4 introduced .) • Clause 8.for the first time in a FIDIC contract .

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