2 Week Training Workshop

Understanding FIDIC Standard Condition for
Design, Build Operate (DBO) & Transfer Project Contracts

Understanding the Risks & Mitigation Options

Including Special Conditions for Contractor Financing, Project Viability Gaps, Project Commercial Risks, Payment through Project Revenue only Provisions

Understanding Standard Contract Conditions
Project Specific Contract Conditions Drafting that is Effective
Contract Administration & Dispute Resolution that Avoids Harming Project Objectives
Protecting your Organization through Documenting Project Events & Problems

2 Week Training Programs

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What is Covered in this Program

Design Build Operate (DBO) Transfer PPP BOT Projects have been the Government Method of choice to enable Rapid Economic and Service Development even in the face of Limited Resources. These projects aim to meet the Intended Objectives including
(1) Local Community Development,
(2) Service Improvement,
(3) Efficient Operations and
(4) Reasonable Costs for the Users.

This program will show that FIDIC Standard DBO Contract is a Good Benchmarking Contract for your own Build Operate Transfer or PPP Contracts. In these projects the Contractor is provided the National Resource or An Ongoing Government Facility, and the Contractor Designs his Project, Constructs, Operates and Recovers his agreed Costs plus Profit, and then returns the Project to the Owner or Government in Good Working Condition.

Most popular example of a DBO Project is where the contractor is offered land to build a Road or a Bridge, and when completed he starts charging toll from the users, collects the revenue till his agreed costs and profits are recovered, and then hands the Road or bridge to the government. Projects could be a Green Field (just land given) or Brownfield where existing road or bridge given to contractor which he converts into, say, an expressway. Design Build Operate or PPP contracts have been used for Airports, Ports, Hospitals, Hotels, Gardens, Visa Services, Government Services... all with small modifications to the method of recovering costs and profit for the contractor.

FIDIC came up with this Design Build Operate DBO Standard Contract in 2008 for Green Field Projects with a 20 year operating period. In this Contract the Contractor has no responsibility for Financing or Commercial Success of the project he just Designs the project, Constructs it and Operates it for 20 years on behalf of the Owner on Agreed Payment Basis. This program will include some more provisions you will need to include Contractor Financing of the Project, Owner agreeing subsidies to take care of viability gaps, and Mechanism for sharing of revenue during period of Contractor Operation of the Project.

This program will discuss in detail Design Build Operate DBO Contract Conditions including:
(1) Definitions and Some Key Arrangements
(2) Operating License
(3) Errors in the Employer's Requirements,
(4) Confidential Details
(5) Compliance with Laws, Joint and Several Liability.
(6) The Employers Obligations and Financing Arrangements if required.
(7) Employers Staff and Representatives on the Project and their Determination of Issues.
(8) The Contractor’s Obligations including
(a) Performance Security,
(b) Contractor's Representative and Project Staff,
(c) Subcontractors & Nominated Subcontractors,
(d) Obligation to Co-operate,
(e) Setting Out,
(f) Safety Procedures,
(g) Quality Assurance,
(h) Site Data,
(i) Sufficiency of the Accepted Contract Amount,
(j) Unforeseeable Physical Conditions,
(k) Rights of Way and Facilities,
(l) Avoidance of Interference,
(m) Access Route & Transport of Goods,
(n) Contractor's Equipment,
(o) Protection of the Environment,
(p) Electricity, Water and Gas Supplies,
(q) Employer's Equipment and Free-Issue Materials,
(r) Progress Reports,
(s) Security of the Site,
(t) Contractor's Operations on Site,
(u) Fossils,
(v) Changes in the Contractor's Financial Situation.
(9) Contractors D-B-O Design obligations including
(a) Contractor's Documents & Undertaking,
(b) Technical Standards and Regulations,
(c) As-Built Documents,
(d) Operation and Maintenance Manuals,
(e) Handling Design Error.
(10) Contractor Employees related Requirements.
(11) Contractors Plant, Materials and Workmanship brought to the Site.
(12) Project Commencement Date, Completion Time and Program of Works.
(13) On Commencement of Design and Build part of Project some key provisions, program will also discuss changes where contractor is financing the project, for
(a) Time for Completion of Design-Build,
(b) Extension of Time for Completion of Design-Build,
(c) Delays Caused by Authorities,
(d) Rate of Progress,
(e) Delay Damages relating to Design-Build,
(f) Suspension of Work,
(g) Consequences of Suspension,
(h) Payment for Plant and Materials in Event of Suspension,
(i) Prolonged Suspension,
(j) Resumption of Work,
(k) Completion of Design-Build,
(l) Failure to Complete.
(14) Operation Phase of The project:
(a) Commencement of Operation Service,
(b) Independent Compliance Audit,
(c) Delivery of Raw Materials,
(d) Training,
(e) Delays and Interruptions during the Operation Service,
(f) Failure to Reach Production Outputs,
(g) Completion of Operation Service,
(h) Ownership of Output and Revenue.
(15) Testing of Works on Completion including
(a) Tests on Completion,
(b) Delayed Tests on Completion of Design-Build,
(c) Retesting of the Works,
(d) Failure to Pass Tests on Completion of Design-Build,
(e) Completion of the Works and Sections, and, Commissioning of Parts of the Works,
(f) Commissioning Certificate,
(g) Joint Inspection Prior to Contract Completion,
(h) Procedure for Tests Prior to Contract Completion,
(i) Delayed Tests Prior to Contract Completion,
(j) Failure to Pass Tests Prior to Contract Completion,
(k) Retesting Prior to Contract Completion.
(16) Handling Defects Outstanding at Completion
(18) Price Variations and Price Adjustments or Recoverable Cost Adjustments
(a) Right to Vary,
(b) Value Engineering,
(c) Variation Procedure,
(d) Payment in Applicable Currencies,
(e) Provisional Sums, Adjustments for Changes in Legislation,
(f) Adjustments for Changes in Technology,
(g) Adjustments for Changes in Cost.
(19) Contract Price and Payment or Reimbursable Cost Recovery
(20) Asset Replacement Fund,
(21) Maintenance Retention Fund.
(22) Termination by Employer the Processes and Settlements,
(23) Suspension & Termination by Employer.
(24) Risk Allocations on the D-B-O Project
(a) The Employer's Risks during the Design-Build Period,
(b) The Contractor's Risks during the Design-Build Period,
(c) The Employer's Risks during the Operation Service Period,
(d) The Contractor's Risks during the Operation Service Period and Responsibility for Care of the Works,
(e) Consequences of the Employer's Risks of Damage,
(f) Consequences of Contractor's Risks resulting in Damage,
(g) Limitation of Liability,
(h) Indemnities by the Contractor,
(i) Indemnities by the Employer,
(j) Shared Indemnities,
(k) Risk of Infringement of Intellectual and Industrial Property Rights.
(25) Exceptional Risks and Processes,
(26) Insurance Obligations
(26) Claims, Disputes & Arbitrations including
(a) Contractor's Claims,
(b) Employer's Claims,
(c) Appointment of the Dispute Adjudication Board,
(d) Failure to Agree Dispute Adjudication Board,
(e) Avoidance of Disputes,
(f) Obtaining Dispute Adjudication Board's Decision,
(g) Amicable Settlement,
(h) Arbitration,
(i) Failure to Comply with Dispute Adjudication Board's Decision,
(j) Disputes Arising during the Operation Service Period,
(k) Expiry of Dispute Adjudication Board's Appointment,

This Euro Training Global Limited training program will discuss for all the above clauses, and from benchmarked with other Industry Design Build Operate DBO Contracts:
(1) Among Contractor, Owner, Consultant, Who is responsible for What;
(2) A Clause by Clause Understanding of the Range of Possible Contractual Situations that can arise;
(3) The Actions required to be Taken to Minimize Delay and your Contractual Liability.
(4) Recommended Contract Administration Procedures;
(5) Possible Disputes & Claims;
(6) The Site Records & other Documentation to be Generated, including that for resolving usual disputes;
(7) Situations under which you should consult your Legal Advisers;
(8) Effectively Perform Clause Specific Contract Administration Responsibilities;
(9) Benchmark your Contracts with Good & Best International Practices to identify the details you can draft and changes in risk allocation you can consider.

Who Should Attend
This program is intended for Design Build Operate DBO Design Build Transfer BOT and PPP Project Contract Professionals , Legal Staff, Site Professionals, Finance Professionals, Auditors, Consultants and Project Managers.
This program can be used to train project implementation teams - when a new Design Build Operate DBO, Public Private Partnership PPP or Build Operate Transfer BOT Contract is being started in by your organization.
Program Content & Modules
Program Content & Modules
Understanding FIDIC Standard Condition for Design Build Operate (DBO) & Transfer Project Contracts
For Detailed Program Content Please Email fid305@eurotraining.com or Whatsapp +447424964861 with code fid305