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DESIGN-BUILD FOR RAIL TRANSIT CONSTRUCTION - QUALITY THROUGH RISK ALLOCATION

Sidney Scott

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Abstract

Design-Build (DB) contracting, commonly referred to as turnkey and implemented as Design-Build-Operate-Maintain (DBOM) or privatization for projects within the transit industry, is gaining wider acceptance as more public owners decide to try DB for selected projects. The use of DB shifts greater responsibility to the private sector and presents a different set of risks to the owner and the contractor than found in the traditional Design-Bid-Build contracting approach. This paper discusses DB procurement for transportation projects, identifies risks to the owner and contractor, and discusses strategies for allocating risks in the DB contract and managing them during the project.

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What this paper is about

Design-Build (DB) contracting, commonly referred to as turnkey and implemented as Design-Build-Operate-Maintain (DBOM) or privatization for projects within the transit industry, is gaining wider acceptance as more public owners decide to try DB for selected projects. The use of DB shifts greater responsibility to the private sector and presents a different set of risks to the owner and the contractor than found in the traditional Design-Bid-Build contracting approach. This paper discusses DB procurement for transportation projects, identifies risks to the owner and contractor, and discusses strategies for allocating risks in the DB contract and managing them during the project.

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Available abstract

Design-Build (DB) contracting, commonly referred to as turnkey and implemented as Design-Build-Operate-Maintain (DBOM) or privatization for projects within the transit industry, is gaining wider acceptance as more public owners decide to try DB for selected projects. The use of DB shifts greater responsibility to the private sector and presents a different set of risks to the owner and the contractor than found in the traditional Design-Bid-Build contracting approach. This paper discusses DB procurement for transportation projects, identifies risks to the owner and contractor, and discusses strategies for allocating risks in the DB contract and managing them during the project.

Key concepts: Turnkey, Procurement, Quality (philosophy), Business, Transit (satellite), Transport engineering, Set (abstract data type), Finance

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