ABSTRACT
Prieto compares the two project delivery approaches of Design Bid Build (DBB) and Design Build Finance Operate Maintain (DBFOM). under DBB, the owner retains significant interface risk between the designer and builder and in multi-prime projects also retains integration risk across the primes. DBFOM project delivery approach significantly modifies the risk profile of the owner as the DBFOM contractor now assumes both this interface risk as well as the integration risk across all project elements. The different cost categories that exist in a certain site have to be treated differently and are related to different production factors such as, costs for site support and costs for site logistics. Site Support category includes costs for caretakers, housekeepers, porters, etc. Also included are costs for support personnel and for the depreciation of support equipment. Site Logistics category includes all living expenses for personnel as well as depreciation of lodgings and field equipment, consumables, and so on.
