Rijksgebouwendienst

What is a Public Private Partnership?

The Dutch government gave the green light for the Public Private Partnership (PPP) model to be applied in the construction and renovation of government properties. This means that market parties can become involved in renovation and new-build projects, but also in maintenance, facility services, operation and financing. Public-private partnerships are expected to help control the cost of construction projects and provide opportunities for innovation.

Integrated approach

DBFMO (Design, Build, Finance, Maintain & Operate) is the core of public-private partnerships. The DBFMO model covers the entire process, from the production of a design to a fully operational building with all the associated services. An integrated approach is the keyword here. The idea behind this approach is that better and most likely cheaper housing can be developed when the consequences of a particular design are thoroughly examined in the early stages of the development process. Lifecycle costs can be reduced when investment and exploitation costs are brought in line with one another.

Long-term relationship

DBFMO contracts form the most comprehensive ‘service package’ on offer in public-private partnerships to develop government properties. To draw a comparison with booking a holiday: the trip can include the flight, lodging, food, drink and even excursions – but a holidaymaker can also choose to purchase only the airline ticket and overnight accommodation. The same applies to PPP projects: they can be based on a Build & Maintain contract but also on a Design & Build contract, for instance when it turns out that purchasing management and maintenance services elsewhere is cheaper or more efficient.

If the client chooses the entire DBFMO package, he can expect to enter into a long-term relationship with a private-sector party which covers the construction of the building as well as financing, facility services, operation and maintenance.