Glossary

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...

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...

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.

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...

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.

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...

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,...

A business arrangement of two or more firms that agree to form a new entity for a specific business purpose. The parties to the joint venture manage the enterprise - sharing all profits, losses, expenses, and assets - and have joint-and-several liability to the owner....

Compensation paid by a design-builder or CMAR firm to an owner, in lieu of all liability for any extra costs, losses, expenses, claims and penalties.

The act of taking measures to minimize the extent of damage resulting from an adverse event. Collaborative delivery contracts spell out, for each foreseeable adverse event, which party can most efficiently be responsible for taking loss-control measures.