Alternative Project Delivery Methods and P3 Structures
Multi-Dimensional Solutions for the Life Sciences & HealthTech Sector
DBFOM
Availability Payment or Revenue
Risk
Progressive
Design, Build,
Finance,
Operate and
Maintain (DBFOM)
or P3
Design, Build, Operate and Maintain (DBOM)
Design, Build, Finance
(DBF)
Progressive Design Build (PDB)
Design-Build (DB)
Design, Bid, Build
(DBB)
Degree of private sector accountability, integrated delivery, risk transfer and extent of private financing
Public Sector
Private Sector
RISK
Design, Bid, Build (DBB)
Public sector procures a designer to prepare the project plans and specifications, followed by a separate procurement to engage a builder to build the assets, which is typically awarded to the lowest bidder. Public sector signs separate contracts with the designer and the builder.
Public sector defines project goals, secures funding, ensures regulatory compliance and oversees performance. The private sector is responsible for the design, financing, construction and long-term operations while assuming risks like cost overruns and technical challenges. This innovative method emphasizes early collaboration, shared risk, flexible project development, reduced time and costs for the bidding teams, and may include a preliminary development agreement (PDA).
Progressive Design, Build, Finance, Operate
and Maintain (DBFOM) or P3
Private sector designs and builds the infrastructure to meet the public sector stakeholder’s specifications, often for a fixed price. Public sector finances and private sector partner assumes primary risk.
Design-Build (DB)
Progressive Design-Build (PDB)
Phase 2: Final design and construction. When the design is between 50 and 75 percent complete, the design-builder typically issues a Guaranteed Maximum Price (GMP).
Phase 1: Preconstruction.
Public sector engages design-builder in a two-phased qualification-based process, which may include a preliminary development agreement (PDA).
Design, Build, Finance (DBF)
Long-term: Private sector carries the cost through operation of the asset and public sector makes monthly payments.
Short-term: Public sector makes milestone payments and full payment once construction is complete, or
Private sector designs, constructs and finances a project. Financing may include:
Private sector designs, constructs, operates and maintains a publicly owned asset for a specific period. Public sector finances and retains ownership of the asset.
Design, Build, Operate and Maintain (DBOM)
Design, Build, Finance, Operate and Maintain (DBFOM)
Degree of private sector accountability, integrated delivery, risk transfer and extent of private financing
Public Sector
Public
Sector
Public
Sector
Design, Build,
Finance,
Operate and Maintain
(DBFOM)
Revenue Risk
Design, Build, Finance, Operate
and Maintain
(DBFOM)
Availability
Payment
Design, Build, Operate and Maintain (DBOM)
Design, Build, Finance
(DBF)
Progressive Design Build (DB)
Design-Build (DB)
Design, Bid, Build
(DBB)
Design, Build, Finance, Operate and Maintain (DBFOM) – Revenue Risk
Private sector designs, constructs, finances, operates and maintains a publicly owned asset for a specific period. Public sector pays the private sector a maximum periodic payment.
Design, Build, Finance, Operate and Maintain (DBFOM) – Availability Payment
Private sector designs, constructs, operates and maintains a publicly owned asset for a specific period. Public sector finances and retains ownership of the asset.
Design, Build, Operate and Maintain (DBOM)
Long-term: Private sector carries the cost through operation of the asset and public sector makes monthly payments.
Short-term: Public sector makes milestone payments and full payment once construction is complete, or
Private sector designs, constructs and finances a project. Financing may include:
Design, Build, Finance (DBF)
Phase 2: Final design and construction. When the design is between 50 and 75 percent complete, the design-builder typically issues a Guaranteed Maximum Price (GMP).
Phase 1: Preconstruction.
Public sector engages design-builder in a two-phased qualification-based process, which may include a preliminary development agreement (PDA).
Progressive Design-Build (DB)
Private sector designs and builds the infrastructure to meet the public sector stakeholder's specifications, often for a fixed price. Public sector finances and private sector partner assumes primary risk.
Design-Build (DB)
Public sector procures a designer to prepare the project plans and specifications, followed by a separate procurement to engage a builder to build the assets, which is typically awarded to the lowest bidder. Public sector signs separate contracts with the designer and the builder.
Design, Bid, Build (DBB) (+)
Construction Manager
at Risk
(CMAR)
Public sector hires a construction manager (CM) early in the project to provide input during the design phase and assumes the role of the general contractor during construction. The CM consults with the public owner during the design phase, helping to manage costs, schedule and constructability. Once the design is complete, the CM assumes the risk of delivering the project within a guaranteed maximum price (GMP), which ensures that the project does not exceed the agreed-upon budget. The CM also manages subcontractors and the day-to-day construction process.
Construction Manager at Risk (CMAR)
Revenue Risk: Private sector designs, constructs, finances, operates, and maintains a publicly owned asset for a specific period. Private sector receives project generated revenues such as customer charges or tolls.
Availability Payment: Private sector designs, constructs, finances, operates and maintains a publicly owned asset for a specific period. Public sector pays the private sector a maximum periodic payment.
Design, Bid, Build
(DBB)
Public sector procures a designer to prepare the project plans and specifications, followed by a separate procurement to engage a builder to build the assets, which is typically awarded to the lowest bidder. Public sector signs separate contracts with the designer and the builder.
Design, Bid, Build (DBB)
Long-term: Private sector carries the cost through operation of the asset and public sector makes monthly payments.
Short-term: Public sector makes milestone payments and full payment once construction is complete, or