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Ministry of Finance | Treasury DepartmentFinancing Directorate | Public-Private Investments Division
Introduction on model DBFM(O) Agreement
Merlijn Nijhof
International conference on Dutch Construction Contracts 15-10-2010
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The Ministry of Finance
•Building dated 1975,
•66.000 m2 & 1400 persons
Challenges:
Improve cooperation and communication within the department
Indoor air quality
Support organisational changes
Housing more employees
Options: demolish & rebuild or renovate
Either way: no luxuries!
Contract: traditional or life cycle contract
Life cycle contract: DBFMO
DBFMO = Design Build Finance Maintain and Operate
•‘Life cycle’ (or chain) approach
•Long term contract
•Only 1 contractor: a consortium subcontractors / shareholders
•Total package = 1 service
•Payment when the service is delivered (housing)
•Object remains property of the public entity
Better track record on:
-Costs (within budget or below)
-Time (delivered on time or even before)
-Quality (incentives to innovate, creativity in the design proces)
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Atrium
8
Corridors
9
Pantries
10
Serre
Atrium met Grote
Binnentuin
Vergadercen
trum
Wintertu
in
Platan
enhof
voorterrein
aan Korte
Voorhout
Grote P
oort
Centrale en
tree
Kleine Poort
After….
PPP@Dutch government
-Minimum contract size:
- housing € 25 mln;
- infrastructure € 60 mln
-Market parties asked Dutch government for consistent approach
- www.pppdutchgovernment.nl
- Ministries of Finance, Housing, Transport, Justice and Defense
- Close cooperation with market parties
- Best practices / models
-Model DBFM(O) agreement
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Model DBFM(O) agreement - characteristics
Framework clauses
Special clauses on housing and infrastructure
Focus in competitive dialogue on contractual issues that are specific for the project
Recognizable for financial parties
Regularly updated
� more easy to apply!
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Last but not least
We’ll continue to make it easier:
• Not only for Dutch government
• Also for local authorities, hospitals etc
• Recent Dutch PPP report: €700 mln cost savings
• Coalition agreement 2010: stimulate PPP
• 2011: model tender guidelines on a competitive dialogue
DBFM(O) works!
