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Your assignment is to prepare and submit a paper on construction economics and procurement methods

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Your assignment is to prepare and submit a paper on construction economics and procurement methods. The report, addressing the Oldcross Borough Council, will explain the basics of “Design-Build Finance and Operate” for public project procurement as well as its advantages and disadvantages. It will then discuss the benefits available for clients, contractors and the supply chain when they get into partnering relationships when designing and constructing civil engineering projects. Finally, it will explain the way considering cost risk affects the choice of procurement method.

In DBFO, it is the bundled responsibility of a contractor to design, build, finance and operate a client’s project (Minnow & Freeman 2009, p. 69). This approach has its basis on the pressure and needs to change public procurement models specifically to reduce public debt. It is then driven by the success of partnerships between public and private sectors, referred to as PPP, in infrastructure as it stems from and takes advantage of the expertise of both sectors. Its essence is the sharing or transferring of risk and responsibility (Olsen & Osmundsen 2005, p. 517). Characterised by long-term relationships and the lack of an actual transfer of ownership, this project delivery approach describes a mechanism used by government entities mainly for constructing public infrastructure projects. They usually entail dams, bridges, toll highways, hospitals and waste and water treatment facilities. The public sector is able to initiate projects even though they may not be financially, operationally, and technically able on their part at that particular time.

In a PPP, rather than specifying or determining the manner in which the project will be developed, the public partner is only required to specify what they need the project&nbsp.to achieve.&nbsp.They express these requirements in terms of objective and measurable performance, which are among the most common criteria in the construction industry. On their part, the private partner will commit to a long-term relationship that can run into several decades.