DBOM

DBOM stands for design-build-operate-maintain, a project delivery and procurement model used for large infrastructure and facilities projects. In a DBOM arrangement, a single contractor accepts responsibility for the design and construction of a facility and for operating and maintaining it over a defined contract term. Some formulations use design-build-own-operate-maintain, in which ownership of the asset may transfer to the operator or back to the client at contract end.

Contractual structure: The client specifies performance criteria, availability requirements, and lifecycle maintenance standards. The DBOM contractor designs and builds to those specifications, then assumes ongoing operation and maintenance responsibilities, often under performance-based incentives. Payment terms may include lump-sum or milestone payments for construction, plus ongoing operating and maintenance fees, availability payments, or revenue-sharing models.

Advantages include a single point of accountability for design, construction, and operation, potential lifecycle cost optimization, smoother handover, faster delivery, and reduced interfaces between design and operations. The arrangement can improve reliability and provide clearer lifecycle performance signals for the contractor. However, DBOM also poses risks: long-term contractual exposure for the contractor, high financing and risk in the performance period, potential for higher overall cost if incentives are misaligned, and greater complexity in procurement and contract management. Clear performance metrics, robust change control, and strong governance are essential.

DBOM is commonly used in energy, water, transportation, and large public facilities, particularly within public-private partnerships or concessions. It is related to other models such as design-build-operate (DBO) and design-build-finance-operate-maintain (DBFOM), with variations primarily in ownership and financing arrangements.