CMG 6402 - Design-Operate-Build Model in Construction Projects

This report focuses on the Design-Build-Operate (DBO) model as a project delivery system, highlighting its implementation in resolving project complexities through third-party involvement. It details the responsibilities, advantages, and cost-effectiveness of the DBO model, emphasizing the importanc...Read More

Assignment
Construction Management

Design-operate-build model
Contents
Abstract:................................................................................................................................................2
Introduction:..........................................................................................................................................2
Description:...........................................................................................................................................2
Responsibilities:....................................................................................................................................3
Advantages:...........................................................................................................................................3
Project life cycle cost:...........................................................................................................................4
Procurement methods:...........................................................................................................................4
Concern area:.........................................................................................................................................4
Structure of DBO model:.......................................................................................................................5
Conclusion:............................................................................................................................................6
References:............................................................................................................................................6
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Design-operate-build model
Abstract:
In this paper, we are going to focus on Design, build, and operate model for the
implementation of project delivery system. The complexity of the project can be resolved with
the deployment of design, build, and operate model. In this delivery model, the third party is
involved for the c completion of the project. It is cost effective development scheme because
the third party is responsible for completing the project on time and carrying out its
maintenance operation throughout the project life.
Keyword: Design-build-operate model, Project delivery system
Introduction:
The Design, build and operate model is mostly implemented by the project manager in the
development of the project delivery system. The project delivery system is based on the study
of fundamentals like objectives, project drivers, complexity of the project, and risk
management. The Design, build and operate model is the first choice of project manager
because it can deliver the project on time. Design build operate project delivery model is
capable of including the functional areas like operation and maintenance modules. This
methodology is mainly accepted by the private sector of the corporate.
Description:
The project manager has the responsibility of determining the organizational processes which
should be undertaken for designing, procurement, and construction. The sequencing of
project activities is the major responsibility of the project manager. The private company is
provided with the facility of completing the project to operation under the cost approved in
the tender. No extra cost has to provide by the owner for completing the project activities.
The purchase agreement is signed with the contractor who requires minimum amount of cost
and time for finishing the project. The concession period is the period in which contractor set
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Design-operate-build model
out their project activities to meet the target plan. The coordination of the activities helps in
predicting the efficiency and effectiveness of completing the project on the scheduled time
(Cassino, 2014). The operating and the maintenance cost is generated from revenue collected
from the operational phase of the project. The coordination in the operational activities helps
in managing the purchase agreement signed between the project owner and the contractor.
The owner of the project has to take a risk on believing the efficiency of the third party in
providing the good quality finished product. The commercial and the residual risk in getting
starting the project can be minimised by passing all the activities of the project from
construction and maintenance to the third party.
Responsibilities:
In the deployment of the DBO model, the private entity is authorised for designing and
constructing the project including the maintenance services which will be provided
throughout the life cycle of the project (Gibson, 2011). The revenue risk of the project
operation can be minimized.
Advantages:
The private entity is responsible for carrying over functions of the project like operation,
construction, and maintenance. The maintenance services will be provided by the third party
through the life cycle of the project (Smith, 2014). The designing efficiency of the
undertaking charged party can be improved through the inclusion of construction equipment.
The good and healthy relationship between the project owner and the third party can give
good result. The estimation of the cost can be easily determined. Single contractor is
responsible for completing all the phase of the project delivery system. It works on the
cooperation of the team efforts. The innovation can be included in the designing and the
construction phase (Dewi, 2016).
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Design-operate-build model
Project life cycle cost:
The third party is responsible for spending money on the maintenance required throughout
the life of the project. It does not affect the budget of the organization (Valvano, 2014). The
annual maintenance budget should be approved by the third party . The owner of the project
has to pay a single price for the construction, operation, and maintenance of the project. It is
the cost effect method for the completion of the project because the project provided to the
owner is of good quality so that there can be less chance of maintenance which results into
the smooth functioning of the enterprise.
Procurement methods:
The contractors are involved in the bidding process for passing of the tender through the
project owner. The project owner has the choice of making comparison among the
participating contractor. The contractor has to mention the price and the time required for
completing the project (Aashuri, 2013).
Concern area:
The success of the project depends on the effective working of the third party which has
taken the charge of completing the project within the approved time and cost. The good and
healthy relationship between the project owner and the third party can give good result. The
single contractor is responsible for completing the activities involved in the project are
development of the requirement specification plan, designing of the project, operational set
up of the project, testing the functional modules, generating feedback, monitoring and
controlling of the project, and providing maintenance services throughout the life of the
project (Overcash, 2005). The language barrier is the major concern area in the DBO model
because it can create the difference in the requirement specification plan developed by the
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Design-operate-build model
concern team because they are not able to understand clearly the requirement of the project
owner due to the difference in the language.
Structure of DBO model:
The following graph shows the structure of the DBO model which is used for having the
lending agreement of the project between the contractor party and the project owner. The
agreement is signed with the shareholder of the third party for completing the project on time
and within the approved budget (Kahn, 2015). The contractor is responsible for the variation
in handling the project activities. The supply and demand of the resources and the equipment
should be managed by the contractor on the site for carrying over the project activities. The
good quality project should be provided to the owner so that there can be less chance of
maintenance. The measuring parameters should be incorporated by the contracting party
which helps in testing the functionality of the project that it meets the requirement placed by
the project owner during the requirement specification plan. The language plays an important
role in clearly specifying the requirement of the project. The difference in the language can
increases the chance of obscure in the project.
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Design-operate-build model
Conclusion:
In this paper, we have focused on the design-build-operate model for the project delivery
system. The language is the important factor in specifying the requirement and functional
areas of the project. DBO model is the most acceptable alternate project delivery system by
the private sector of the corporate area.
References:
Overcash, A. (2005). Project delivery Methods: Modern construction problem. Retrieved
from
https://www.americanbar.org/content/dam/aba/directories/construction_industry_kno
wledge_base/keydecision3.authcheckdam.pdf
Kahn, E. (2015). Beyond design-bid-build: Issues to consider in alternative project delivery
system. Retrieved from
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Design-operate-build model
http://enewsletters.constructionexec.com/riskmanagement/2015/08/beyond-design-
bid-build-issues-to-consider-in-alternative-project-delivery-systems/
Valvano, J. (2014). Design and development. Retrieved from
http://users.ece.utexas.edu/~valvano/Volume1/E-Book/C7_DesignDevelopment.htm
Aashuri, B. (2013). How can innovative project delivery system improve the overall
efficiency. Retrieved from
http://www.dot.ga.gov/BuildSmart/research/Documents/11-21.pdf
Cassino, K. (2014). Project delivery system. Retrieved from https://www.dbia.org/resource-
center/Documents/project_delivery_systems_smartreport140806.pdf
Gibson, E. (2011). Changing project delivery system: An implementation framework.
Retrieved from http://web.mit.edu/sis07/www/gibson.pdfhttp://eureka.sbs.ox.ac.uk/
5073/1/2014-03.pdf
Smith, J. (2014). Design-built-finance-own-operate-transfer approaches. Retrieved from
https://www.twdb.texas.gov/publications/reports/numbered_reports/doc/R363/D4.pdf
Dewi, A. (2016). Framework for implementing design built project delivery system.
Retrieved from https://eprints.qut.edu.au/61741/1/Anak%20Agung%20Diah_Parami
%20Dewi_Thesis.pdf
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