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Scotland, in particular the North of Scotland Water Authority (NoSWA), have led the way in implementing Design, Build, Finance and Operate (DBFO) contracts in recent years. They have let four DBFO schemes totalling 420m in capital value and appointed Catchment as Concessionaire for three of these. A number of Design Build Operate (DBO) contracts are now being procured in North America, which adopt many of the same principles as DBFO. This paper examines the challenges and lessons learned by both NoSWA and by Catchment in the implementation of DBFO, focusing on the most recent project, the Moray Wastewater Scheme. This experience will offer insights into the challenges and successes of DBFO, as experienced in Moray, to the North American water industry.

The paper explains the drivers behind Scotland's DBFO experience, and the drivers for the Moray Wastewater Scheme in particular. It describes the many parties involved in the process and their relationships. If describes project challenges: risk allocation, liability best value and innovation. It then examines Customer challenges: NoSWA's fears, start-up costs, bid evaluation, performance specification, managing changes and partnering. Contractor challenges are also examined: tunneling risk, marine modeling to achieve ‘less-build’ solution, constructability, working in partnership with third parties including permitting bodies and environmental regulator, SEPA and finally challenging traditional design approach through working with the Operator.

It offers further DBFO issues for discussion and draws conclusions about the Moray project and the DBFO process.
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Document Type: Research Article

Publication date: 2001-01-01

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