Video: Is the DBFO model worth the risk?
DLA Piper Middle East’s Daniel Xu considers whether GCC construction outfits should pursue projects on a design-build-finance-operate (DBFO) basis
The design-build-finance-operate (DBFO) model is gaining traction in the Middle East, but the strategy is not suited to all organisations.
Speaking at Construction Week: Leaders in Construction UAE Summit 2016, Daniel Xu, senior legal advisor at DLA Piper Middle East, explored the intricacies of the DBFO model, and asked whether or not GCC construction outfits should risk pursuing the strategy.
“The expertise of the private sector – the technology and innovation – [can raise] quality and also help with cost management,” Xu told attendees.
“Of course, there is the cost efficiency that comes with a PPP [public-private partnership] project, generally, because when you combine design, construction, and financing to a single point of contact, the contractor or the project company has an incentive to ensure that the project’s design takes into consideration the entire operational lifecycle,” he added.
Xu continued by exploring the various merits and demerits associated with the DBFO model, before providing a general summary of risk allocation typically involved in such projects.
The following video shows Xu’s presentation in its entirety. For full coverage of CW: Leaders in Construction UAE Summit 2016, check out issue 625 of Construction Week.