Projects

Design-Bid-Build (DBB)

A commonly used delivery method in which an owner first procures and contracts with an engineer to prepare detailed design plans and specifications for a project. The owner then conducts a second procurement process and contracts with a separate firm to construct the...

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Design-Build (DB)

A delivery method in which an owner enters into a single contract with a design-builder to design, permit, construct, test, and commission a project. Within design-build project delivery there are two basic variations: progressive and fixed-price.

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Design-Build-Operate (DBO)

A delivery method that combines the components of design-build - designing, permitting, procurement, construction, testing, and commissioning - with operation and maintenance (O&M) services into a single contract. The owner's final acceptance of the project does...

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Design-Build-Operate-Finance (DBOF)

A further extension of design-build-operate delivery in which an owner enters into a single contract with a DBOF team for the design, construction, long-term operations and maintenance, and financing of a project. The financing arrangement may encompass either the...

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Embedded Relationship

A separate (and inserted) contractual relationship with an entity for the purpose of providing specific services to integrate and facilitate work components in a collaborative delivery project.

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Fixed-Price Design-Build (FPDB)

A project delivery method in which a single fixed price - which encompasses both designing and constructing the project - is established when the contract is signed. FPDB is used when the owner has defined the project requirements and scope of work sufficiently for...

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Gearing

The ratio of the equity contribution to the amount of long-term debt in a P3 project, a key consideration that functions much like the down payment required for a residential mortgage.

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Guaranteed Maximum Price (GMP)

An approach to pricing services in a collaborative delivery proposal and contract. The GMP is the sum of all reimbursable costs, plus a fee that usually includes overhead and profit. Costs incurred above the GMP are the responsibility of the design-builder or CMAR...

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Interface Agreement

A contract - commonly used in DBO and P3 projects in which the design and construction entity is separate from the operations entity - between a design-builder or CMAR firm and the operations entity. The interface agreement describes the conditions for testing,...

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