In the quest to streamline infrastructure development, a new study published in the Ukrainian journal *Дороги і мости* (translated to “Roads and Bridges”) is shedding light on international experiences with alternative contracting methods that could revolutionize how large-scale projects are executed. Viktor Komar, a lead researcher from the State Enterprise «National Institute for Development Іnfrastructure» (SE «NIDI») in Kyiv, Ukraine, has analyzed the “Design-Build” (DB) and “Design-Build-Operate” (DBO) contracting methods, offering insights that could significantly impact the energy and infrastructure sectors.
Traditional project implementation methods often involve a sequential approach, where design and construction phases are completed one after the other, leading to prolonged timelines and increased costs. “The shortcomings of the traditional method involve time spent on organizing tenders for each stage, coordinating various contractors, and the distribution of responsibilities between the designer and the builder,” Komar explains. “Additional time costs may also arise if changes need to be made to the project documentation during construction.”
The DB and DBO methods, however, combine these stages into a single contract. In the case of DBO, the operation phase is also included. This integration reduces coordination and project management costs, minimizes risks for the client, and increases the contractor’s responsibility. “In most cases, there is an improvement in the quality of work and a reduction in project timelines compared to the traditional method,” Komar notes.
The study highlights that these methods have been successfully implemented in various countries, including the United States, Europe, and Asia. The legislative aspects, implementation procedures, and effectiveness of these methods, along with risk analysis and cost formation, were thoroughly examined. The results suggest that DB and DBO contracts could be a game-changer for infrastructure projects, particularly in road construction.
For the energy sector, the implications are substantial. Large-scale infrastructure projects, such as power plants and renewable energy installations, could benefit from the streamlined approach offered by DB and DBO contracts. The reduction in project timelines and costs could make these projects more commercially viable, accelerating the transition to sustainable energy sources.
However, the introduction of these contracting methods in Ukraine would require legislative changes to adapt them to local conditions. “Improving the price indexation mechanism in case of market changes is crucial,” Komar emphasizes.
As the world grapples with the need for sustainable and efficient infrastructure development, the insights from Komar’s research offer a promising path forward. By learning from international experiences, Ukraine and other countries can optimize their project implementation strategies, ultimately driving economic growth and environmental sustainability. The study, published in *Дороги і мости*, serves as a valuable resource for policymakers, industry professionals, and researchers seeking to innovate and improve infrastructure development practices.