Design-Build-Operate - Design-Build for Water and Wastewater Projects - page 316

Table 26-2. Advantages and disadvantages of DBO and DB for water/wastewater owners
Design-Build-Operate

Design-Build

Advantage Disadvantage Advantage Disadvantage

Procurement Can allow a relatively

wide range of technical
solutions

Complex process can be costly
and time-consuming
Number of qualified proposers
may be limited

Less complex
More likely to have
desired level of
competition

Need to account for owner
operation

Project Cost Promotes life-cycle cost

efficiency
Cost certainty for long-term
costs of operation and
maintenance

Some added costs when multi-
firm teaming

— Potential for excessive costs in

long-term operation and asset
management

Project Quality Level of service can

be controlled with
performance standards
during operations period

Lack of design control
Design criteria and major
design decisions subject to
contractor discretion

Can establish minimum
design criteria

Limited period for performance
testing prior to acceptance

Project Risk Maximum allocation of

design, performance and
interface risks during
entire project life cycle

Insurance and bonding can be
complicated
Uncontrollable risks (change in
law, inflation, site conditions,
etc.) remain with owner

— Risk allocation limited to design and

construction phases of project
Uncontrollable risks (change in
law, inflation, site conditions, etc.)
remain with owner

Project Schedule Can compress time to

place project into
operation

Extended time for procurement
process can delay schedule

Can reduce time by
fast-tracking design
and construction

—

Accountability Single point of

accountability for entire
life cycle and design-
construction-operation
interfaces

Reliance on one contractor for
all phases of the project

— Single point of accountability limited

to design and construction

Contract
Administration

— Long-term duration and

comprehensive scope of DBO
contract requires careful and
attentive administration

Contract administration
limited to design and
construction phases

—