Page 102 - BASIC GUIDELINE FOR QS

Professional Practice: Guideline for Quantity Surveyor Chapter 3

iv. Build Operate Transfer

BOT finds extensive application in the infrastructure projects and in public–private
partnership.
In the BOT framework a third party, for example the public administration,

delegates to a private sector entity to design and build infrastructure and to operate and
maintain these facilities for a certain period. During this period the private party has the

responsibility to raise the finance for the project and is entitled to retain all revenues
generated by the project and is the owner of the regarded facility.

The facility will be then transferred to the public administration at the end of the
concession agreement without any remuneration of the private entity involved. Some or

even all of the following different parties could be involved in any BOT project such as
the host government, the concessionaire and lending banks.

3.6 Principles in the Selection of Contract Procurement Method
Quantity surveyor must advice the client on choosing the right procurement method.

There are several consideration that must be considered in making decision on which
procurement that are suit for the project that are:

 Project value
 Project complexity
 Location

 Client’s need
 Industry culture

 Location
 Project duration

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