Build, own, operate and transfer (BOOT)
A build, own, operate and transfer (BOOT) contract is a project delivery model that can be used for large projects developed through Public Private Partnerships (PPPs). The term 'Public Private Partnerships' refers to a very broad range of partnerships in which the public and private sectors collaborate for some mutual benefit.
Under a BOOT contract, a private organisation undertakes to complete a large project, such as a complex infrastructure project, which they are granted a concession to finance and build by a public sector partner, typically a government department. The public partner may provide limited funding or other benefits (such as tax exemptions) but the private organisation accepts most of the risks.
The private organisation is then granted the right to own, maintain and operate the project for a set period of time, during which they can draw fees from users of the asset. Once the time period has elapsed, the control of the project transfers to the public sector partner, either freely or for a fee that is stipulated in the original contract. It is common for the time period to be several decades in the case of big infrastructure projects that carry a lot of construction and operational risk.
There are a number of other, related forms of procurement, which allocate rights and responsibilities differently:
- Build, operate, transfer (BOT), whereby the private organisation does not own the project as an asset, they merely receive a concession to operate it for a period of time. See Build operate transfer BOT.
- Build lease transfer (BLT), in which the public sector partner leases the project from the contractor and also takes responsibility for its operation.
- Design, build, finance and operate (DBFO), which also assigns the design responsibility to the private organisation.
For more information see: Procurement routes.
[edit] Related articles on Designing Buildings Wiki
- Build lease transfer BLT.
- Build operate transfer BOT.
- Complex project.
- Concession.
- Concession agreement.
- Design build finance and operate.
- Design Build Finance Transfer (DBFT).
- Design build operate (DBO).
- Design build operate maintain DBOM.
- Major Projects Authority.
- PFI vs PPP.
- Private Finance Initiative.
- Procurement route.
- Public Private Partnership.
- Public procurement.
- Renovate, operate, transfer (ROT).
- Risk allocation.
Featured articles and news
Designing sustainability and performance into buildings
Specifying and selecting sustainable resilient timber products.
Modifying wood to improve resistance to decay and movement.
A last minute, long look for built environment professionals.
The architecture of creative reuse. Book review.
Installing solar panels on listed structures.
Sustainable development global goals, history in progress?
"Unless we act now, the 2030 Agenda will become an epitaph for a world that might have been."
Mike Kagioglou FCIOB named CIOB President
'Sustainable Development Goals must be focus for construction'
BSRIA training; a look at what's on offer
From energy management to compliance training.
TESP video warns to beware of rogue trainers.
Highlighting the slippery tactics of non-approved providers.
New Building Safety Wiki launched
Boosting awareness and understanding of the new fire safety regime.
New playbook on AI in construction published by CIOB
How to get to grips with, and the best from AI.
Digital Construction Report NBS
BIM, cloud, off-site, immersive tech, AI, twins and sustainability.
ECA learning zone and industry focus video series
From updates and amendments to circular economy, emergency lighting and much more.