NEC4: Design Build and Operate Contract

NEC4: Design Build and Operate Contract
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The NEC4 Design Build and Operate Contract (DBOC) is for the appointment of a single contractor to design, build and operate or maintain (but not fund) a client’s asset over a defined service period. It can also be used for situations where a client wants to have an existing asset operated by the contractor while it is being upgraded or extended.

The DBOC core clauses enable the client to create any price-based or cost-based payment strategy, with a mix of prices and defined costs in the price list. A performance table is used to incentivise the contractor to achieve or better the targets set for the operational requirements.

The document contains everything you need to prepare, tender and manage an NEC4 DBOC, including core clauses, secondary Options and forms for the cost schedule and contract data.

Background

The DBOC is part of the NEC4 suite of collaborative, flexible and clearly written contracts for built environment procurement. The suite has a global track record for delivering all kinds and sizes of building and infrastructure projects and services on time, on budget and to the highest environmental and quality standards.

As with all NEC4 contracts, the parties to a DBOC are required to act in a ‘spirit of mutual trust and co-operation’ and give early warnings of anything that could affect time, cost, asset operation or service effectiveness so it can be mitigated without delay.

Change is dealt with by a fast and fair compensation event process which, together with a continually updated and agreed plan, ensures there are no surprises.

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