CONCEPT OF

CONTRACTS AND
ITS TYPES
Lecture - 6

Prof.
Prof. Dr.
Dr. Sajjad
Sajjad Mubin
Mubin
 WHAT IS CONTRACT?

A Contract may be defined as;

“An agreement between two or
more than two parties that is
enforceable by court of law”
A Contract is a written document
describing the legal rights and
obligations of the parties to the
contract .

2
 WHAT IS A CONTRACT?

Semi legal definition of Contract

• In its simplest, most essential form, a construction contract is defined as
an agreement between two parties that is enforceable by law.
• It requires a “meeting of the minds” and there must be service and
consideration.
• One party must agree to perform work for the other party and receive
payment (consideration) for the work.
• The contract must be enforceable by law, which by all practical purposes
means the contract must for the service that is legal.
• There is no actual requirement that a contract be written, realistically it
must be. Oral contracts are essentially impossible to enforce in
construction because of the lack of the evidence regarding the scope of
the agreement.
• Generally, written contracts eliminate problems by removing any doubt
about the agreed-on terms.
 CRITERIA FOR A VALID
CONSTRUCTION CONTRACT

For a contract to be valid and enforceable by law, it must meet certain criteria.
1. There must be mutual agreement or a meeting of the minds.
2. There must be an offer. An offer can normally be withdrawn up until the
time it is accepted, except the bid documents used in public works
generally state that the bid may not be written withdrawn once submitted.
3. The offer must be accepted. The acceptance completes the meeting of the
minds. In low-bid construction, the acceptance is the award of the contract
to the low bidder.
4. There must be consideration for the service performed- payment.
5. The subject matter of the contract must be lawful. A contract to commit a
crime is not legal and not enforceable.
6. The contracting parties must have the legal capacity to enter a contract.
7. A contract with a minor is not lawful.
8. Contracts are signed by representatives of both the owner and contractor
who have the legal authority to sign for their organizations.
 COMPONENTS FOR A VALID
CONTRACT
To be valid, a contract must have:
(1) an offer, (2) an acceptance and (3) consideration (4) capacity

The purpose of the contract

The purpose of the contract should be produced
• A quality construction project
• On time
• Within budget
• safely
 OFFER

Offer
• The offerer must be in writing and shall display intent
of Offeree to contract.
• The offer must be definite and certain and
• The offer must give the offeree the right or power to
accept the offer.
 ACCEPTANCE

Acceptance

Offer

A valid acceptance must include each and every part

of the offer; if the acceptance varies from the offer, it is
termed a counteroffer - a rejection that terminates the
offer.
 CONSIDERATION

Acceptance Consideration

Offer

Each party must agree to exchange something of value

for a contract to be valid and enforceable.
CONTRACT DOCUMENTS
 CONTRACT DOCUMENTS

1. Agreement
2. General Conditions
3. Special/Supplementary Conditions
4. Drawings
5. Technical Specifications
6. Addenda
 AGREEMENT

Agreement is the document that represents and reflects the legal Contract
between the Owner and Contractor. It provides legal evidence and base in
case of litigation and dispute. The purpose of agreement is to record in
written form those items agreed to by the Owner and Contractor. It includes;
– Date of agreement;
– Names and Addressees of the contracting parties (inc. phone no. email
add.)
– Description of scope of work;
– Contract consideration (in figures and words);
– Payment conditions;
– Reference to other documents;
– Signature.
 GENERAL CONDITIONS

They describe the general guidelines that will be used in the contract administration.
Various different general conditions are developed by different organization based
on project/ construction field experience for the use of Owner and General
Contractor (e.g. FIDIC, AIA, PEC). AIA general conditions contain these items:
• General Conditions
• The Owner
• The Contractor
• Administration of Contract
• Sub-contractors
• Changes in Work
• Time
• Payment and Completion
• Security/Protection of Person and Property
• Insurance and Bonds
• Misc. Provisions
• Termination and Suspension/Cancellation of Contracts
 SPECIAL OR SUPPLEMENTARY
CONDITIONS
Special Provisions of the contract are specific requirements for
a project that are unique to it, specifically tailored for a
particular project. Special Provisions may include:
•Survey information to be provided by Owner;
•Changes in Insurance requirement;
•Site visits;
•Performance measurement and Schedule reporting;
•Traffic control, traffic handling provisions and street cleaning
requirement;
•Site Office and utilities;
•Responsibilities of testing of Material;
•Action to be taken in case of discovery of historical asset or natural
resources;
• Disputes, conflicts, LDs.
 COMPARISON OF GENERAL AND
SUPPLEMENTARY CONDITIONS

General Conditions Supplementary Conditions

Establish a common basis for Provides information that is

relationships on the job specific to the project
Classifies and clarifies duties Immediately follow the general
Help to avoid disputes conditions in the specifications
Guide contractors in the book
execution of the project Are also referred to as special
They’re often a standardized Conditions
document Should be reviewed and
discussed prior to starting the job
 STANDARD FORMS, CONTRACTS
AND DOCUMENTS

Standardized contracts and forms have become very

important tools in construction industry. Every construction
supervisor should be familiar with the standardized
documents that are commonly used on projects.

Examples of Standard FIDIC Documents

1. EPC/Turnkey Contract 1st Ed (1999)

2. FIDIC 1987,1999
3. Construction Contract MDB Harmonised Ed (May 2005)
4. Plant and Design-Build Contract 1st Ed (1999)
5. Construction Contract 1st Ed (1999)
 SPECIFICATIONS

Specifications are Technical Provisions. They are written

instruments to be used in conjunction with drawings.
Specification with drawings fully describe and define the scope
of work and contract requirement. They guide bidders in
proposal preparation as well as in execution of work.
Specifications provide information regarding:
•Quality of material;
•Quality of workmanship;
•Construction and installation method; Types of Specification
•Testing and inspection requirement. •Design Specification
•Open Specification
•Closed Specification
•Proprietary Specification
•Equal Specification
 DRAWINGS

Drawings are the means (2-D or 3-D) by which designer

conveys the physical, quantitative, and visual description of
project to the contractor.
•Architectural Drawing
•Structural Drawings
•Mechanical Drawings (HVAC, Fire Protection, Smoke Extraction)
•Electrical Drawings
•Public Health (water supply, sewerage) Drawings
•Site Drawings
 ADDENDA

• Addenda is the formal document that changes the original

bid documents and becomes a part of Bid Package.
• At the time of bid opening, bidders must acknowledge all
addenda.
• Typically addenda may be issued to change the opening
date, to modify the original design, to delete of add some
item to correct some errors.
• Addenda may not issued within about five days of bid
opening, unless the bid date is also expended.
 SAMPLE OF CONTRACT

• Sample of Contract Agreement

Most widely used Contract
Types in Construction
 Most Widely Used
Contracting Types
• Lump sum Contracts
– Petty Lump sum Contract
– Lump sum Engineering, Procurement and
Construction (LSEPC) Contract Classical
• Unit price / Item rate Contracts Methods
• Cost reimbursable Contracts
– Cost plus percentage
– Cost plus fixed fee
• Target Estimate Contracts Modern
• A+B, A+B+C Contracts Methods
• Design Build Operate
• Built Operate and Transfer
 TYPES OF CONSTRUCTION
CONTRACTS
1. Lump-Sum Contract
• This agreement requires the Contractor to bid a fixed sum
based on the project as described in the contract / bidding
documents. The quantities of material required can be
calculated to submit a single lump sum price of work.
• ‘Fixed price’ contracts came into use, often for a lump sum, in
which Contractor has to take all risks of variations, unexpected
ground conditions, currency variation, errors and omission etc.
Such fixed price contracts can be satisfactory for both Client
and Contractor for relatively simple, easily defined works.
Naturally a contractor’s price for undertaking a contract for a
fixed sum is higher than for a bill-of-quantities contract for the
same work.
 LUMP SUM ENGINEERING,
PROCUREMENT &
CONSTRUCTION CONTRACT
• Lump Sum Engineering, Procurement and Construction
(LSEPC) Contract type is used to undertake complex mega
project on lump sum basis, particularly those where
machinery and plants are involved e.g. oil and gas
projects, airports, hydraulic structures etc.
• In an EPC agreement a single party (EPC Contractor) is
obliged to deliver a complete facility, including design,
procurement, construction and commissioning (if
required) on a fixed time and cost to the Client who need
only ’turn a key’ to start operating the facility. EPC
contracting arrangement is also sometimes called as
Turnkey Contract.
 LUMP SUM ENGINEERING,
PROCUREMENT &
CONSTRUCTION CONTRACT

Client / Owner

Consultant

Designer Construction Construction

Contract Contract

Designer Sub-
Contract Sub-Contract Sub-Contract
 LUMP SUM ENGINEERING,
PROCUREMENT &
CONSTRUCTION CONTRACTExecution
Design Termination
Erection/Installation/Construction
Development
Degree of risk

Impact/Value/Degree
of risk

Contrac
t Award Conce
ptual
Efforts/
Cost
Cumulative
Cost

Proposal
Time
Planning
Engineering
Procurement
Construction
Commissioning
 LUMP SUM ENGINEERING,
PROCUREMENT &
CONSTRUCTION CONTRACT

Or, 100% Design

Complete
Invitation to Bidding & Select Design by EPC Procurement Construction
Bid ion of EPC Contractor & Owner’s
Contractor Review & Approval

Fast Track 40% -50%

Design complete

Procurement Construction
 KEY CHALLENGES OF
LSEPC CONTRACTS
• Very accurate estimation
• On time delivery within budget
• Keep variation orders to a minimum
• Strong claim management and follow-up
• Intelligent planning and efficient performance monitoring
• Safeguard timely delivery of equipment from subcontractors
• Control factory acceptance tests of equipment
• Ensure efficient commissioning and testing of equipment
• Secure seamless process from construction to operation
• Poor handle on project by Client / Monitoring of quality / process issues
Or, 100% Design
Select ion Complete
Design by EPC
Proposal Bidding of EPC Contractor & Owner’s Procurement Construction Commissioning
Contractor Review & Approval

Fast Track 40% -50%

Design complete

Procurement Construction Commissioning

27
 CHARACTERISTICS OF LS
EPC CONTRACTS

• Good definition (of work scope) and stable Project conditions;

• Several months for bidding and evaluation;
• Minimum scope changes, variations not account for;
• Low financial risk to owner maximum risk to contractor;
• Cost of the project is known;
• Minimum owner supervision, lesser control on project by Client;
• Variations (changes) are difficult & costly;
• Bidding is expensive as technical & commercial evaluation of bids
require considerable effort;
• Contractors will usually keep allowances for contingencies and price
may be high;
• Extensive role of Third Parties and VSM;
• Proper assessment of all risks and uncertainties;
• High chances of disputes in case of poor FEED/ DOR is not clearly
demarked.
 RISK, COST AND PROFIT
MARGIN IN LS-EPC


Profit  Profit 
 Congtigenc ies 
 
Congtingen cies 

 
 

 
 Fixed and Variable Cost 
Fixed and Variable Cost  

 
 
 


LSTK Cost Plus 29

(PDF) Innovative Approach to Risk Analysis and Management of Oil and Gas Sector EPC Contracts from
a Contractor's Perspective.(Mubin & Mannan)-2014 Available from:
https://www.researchgate.net/publication/279752175_Innovative_Approach_to_Risk_Analysis_and_Ma
nagement_of_Oil_and_Gas_Sector_EPC_Contracts_from_a_Contractor's_Perspective

a) Cost
i. Cost overrun due to change/ variation in quantity and price of goods and services.
ii. Exchange rate of currency and currency fluctuation.
iii. Error in estimation and omissions at proposal or execution stage.
iv. Change in the laws of the country (taxes, interest rate, inflation etc).
v. Problems in finding 100% technical compliance of Product/supplies.
vi. Error in FEED, (not compatible to site conditions) and omissions resulting rework.
vii. Increase in the rate of mark up on guarantees at various stages of the project
execution.
viii. Vender Service Men (VSM) overstay.
ix. Poor claim identification, preparation and follow-up.
x. Incomplete data is provided by procurement at proposal stage.
xi. Noncompliance of quality requirements from Sub-contractor.
(PDF) Innovative Approach to Risk Analysis and Management of Oil and Gas Sector EPC Contracts from a
Contractor's Perspective. (Mubin & Mannan) Available from:
https://www.researchgate.net/publication/279752175_Innovative_Approach_to_Risk_Analysis_and_Managem
ent_of_Oil_and_Gas_Sector_EPC_Contracts_from_a_Contractor's_Perspective

b) Time (Duration)
i. Error in estimation and omissions at proposal or execution stage.
ii. Timely vendor information for detail designing.
iii. Problems in finding 100% technical compliance of supplies and services.
iv. Errors in FEED, resulting in rework.
v. Increase in supply time requested by a vender.
vi. Vendor’s delay in delivery of goods and services.
vii. Stoppage of work on site due to various reasons (Client, Sub-Contractors, Locals and
Regulations).
viii. Unavailability of complete data from engineering wing for preparation of RFQ.
ix. Inadequate project planning i.e. not well in time engineering workflow.
x. (a) Change Order issued to supplier/manufacturer for change in specification by contractor.
(b) Dispute with the supplier/ vender for late supply and under performance.
(c) Delays on letter of credits (LCs) issuance
 UNIT-PRICE CONTRACTS
/ ITEM RATE CONTRACTS

2. Unit-Price Contracts / Item Rate Contracts

Those agreements where a contractor will perform specific work
for predetermined set of unit prices of different items of work.
Contractors submit a unit price for each item. Unit prices are
multiplied by estimated quantities of work and totaled.
The low bidder is the bidder with the lowest price of all items.
Items those unit prices varies from estimated by more than 15%
are sometimes subjected to renegotiation of the unit price. The
goal of unit price contract is fairness to both parties.
Its economical mode of contracting, where profit of contractor is
marginalized and payments are made on work done /
performed.
 REQUIREMENT FOR
UNIT-PRICE CONTRACTS
/ ITEM RATE CONTRACTS

• Inaccurate Data: One of the most frequently encountered risks

in civil engineering construction projects is that the ground
conditions met during construction will not be as expected,
because trial boreholes and test pits cannot reveal the exact
nature of every cubic meter below ground level. This means
that quantities of excavation, filling, rock removal and concrete,
etc., for such as the foundation of structures or laying of
pipelines actually found necessary may differ from those
estimated.
 REQUIREMENT FOR
UNIT-PRICE CONTRACTS
/ ITEM RATE CONTRACTS

• Technological change during project preparation and

contracting: It usually takes 2 years or more, to get a civil
engineering project designed and constructed. During
this time it is always possible for newer processes or
equipment to be developed which the Client needs to
incorporate in the works, or there may be revised
forecasts of demand for the project output. The
traditional way of dealing with these risks of change is for
the design of the works to be completed first, and then
to produce a construction contract for which civil
engineering contractors are invited to tender.
 REQUIREMENT FOR
UNIT-PRICE CONTRACTS
/ ITEM RATE CONTRACTS

• BOQ Basis: The price bidders tender for such a contract is based
on a bill of quantities which lists the estimated quantities of each
type of work to be done, ‘taken off’ (i.e. measured) from the
completed drawings of the works required.
• Against each item a contractor bids his price per unit quantity
thereof, and these, multiplied by the estimated quantity of work
to be done under each item, when totalled form ‘the Contract
Sum’.
• Pro-Rata Payment Modees: This system permits the contractor
to be paid pro rata to the amount of work he actually does under
each item, and also eases valuation of the payment due to the
contractor for executing changes to the design of the works
during construction to overcome some unforeseen difficulty or
make an addition.
 BENEFITS OF UNIT-PRICE CONTRACTS
/ ITEM RATE CONTRACTS

• Client's Minor Changes: The promoter can thus make

reasonably small alterations or additions to the works
required during the construction period – provided
these are not so extensive as to ‘change the nature of
the contract
• Measurement Version: A standard form of contract
using the ‘bill-of-quantities method’, was first
introduced by the UK Institution of Civil Engineers in
1945. This standard form, known as the ICE Conditions
became very widely used, and in the 7th edition is
known as the ‘Measurement Version’.
 BENEFITS OF UNIT-PRICE CONTRACTS
/ ITEM RATE CONTRACTS

• FIDIC: A similar form of contract, known as the FIDIC

Conditions, was developed by the International
Federation of Consulting Engineers for worldwide use.
• The Engineer: A basic provision of both these standard
forms is that the contract between the Client and the
contractor for construction of the works, is
administered by an independent third party – ‘the
Engineer’ – who has the responsibility of seeing that
the provisions of the contract are fairly applied to both
promoter and contractor.
 ADVANTAGES AND
DISADVANTAGES OF UNIT-
PRICE CONTRACTS

Unit Price Contracts (Advantages)

•Very suitable for competitive bidding;
•Financial payment terms are properly tied to the measured work;
•Bidding is speedy and an early start is possible; and
• Flexibility – depending on the contract conditions, the scope and
quantity of work can be varied.
Unit Price Contracts (Disadvantages)
•Final cost is not known at the outset, since the BOQ have been
estimated on incomplete engineering;
•Additional site staff are needed to measure, control and report on
the cost and status of work;
 Types Of Construction
Contracts
3. Cost Plus Contracts or Cost Reimbursable Contract
In this type of Contract, the owner pays the contractor’s costs related
to the project plus a fee that covers profit and non-reimbursable
overhead costs. This approach seems simple, straightforward and
desirable, at first glance. However, there are some disadvantages,
which must be carefully considered. Two types of cost-plus contracts
are used:
1. Cost plus a percentage of costs, under which the fee is an agreed-upon
percentage of the ‘costs’
2. Cost plus fixed fee, wherein the fee does not depend on the contractor’s
costs.
Of particular importance in this type of contract is the need to define
‘costs’ (Halpin & Woodhead, 1998). Cost-plus contracts are often,
though not exclusively, negotiated rather than subjected to a tender
process.
 Types Of Construction
Contracts
3. Cost Plus Contracts or Cost Reimbursable Contract
Clough and Sears (1994) list three important considerations to be
taken into account by owners and contractors when negotiating such
contracts, as follows:
• A clearly understood agreement concerning the determination
and payment of the contractor’s fee;
• An understanding regarding the accounting methods to be
followed;
• A list of job costs that will be reimbursable.
 Risks viz-a-viz
Types Of Contracts
 COST PLUS CONTRACTS OR
COST REIMBURSABLE
CONTRACT
• Often a cost reimbursement contract for specialist work is
negotiated with a suitably experienced contractor.
• If competitive bidding is required this would be based on
comparison of contractors’ quotations for overheads and profit.
The advantage is that the Client’s engineer in charge of the
project can work in partnership with the contractor to devise the
cheapest means of overcoming problems.
• The main disadvantage is that Client carries all the risk of cost
overruns, while the contractor is assured of his profit and fees.
• Where the works can be reasonably well defined / measured, it
may be best to use a measurement type of contract with a
contingency sum allowed for any changes deem necessary.
 Cost Plus Contracts or
Cost Reimbursable
Contract
3. Cost Plus Contracts or Cost Reimbursable Contract
These Contracts are used in situation when it is difficult or impossible
for either party to predict their cost during the negotiation, bid and
award process. (military installation, R&D project, projects in
uncertain conditions. Unless very much required, should be avoided)
i. Cost plus fixed fee are preferred because the amount of profit earned by
contractor cannot increase. Contactor receives the actual direct job plus a
fixed fee and may have some incentive to complete the job quickly since its
fee is fixed regardless of the duration of the project.
ii. Cost plus a percentage may be fair in situation that are very difficult or
when the time to complete work is not known. Contractor receives the
actual direct job plus a fixed percentage and have a limited incentive to
reduce the job cost.
 LSEPC Convertible
Contracts

• In EPC Contracts major risks lies to the Contractor, as scope and design is not
well defined at initial stage and the contract price is fixed. But on the other
hand, major risks are higher on Owner’s part in Cost Plus contract. To have a
balance approach in maximizing projects success rate, Owners and EPC
contractor may adopt combined and convertible reimbursable cum lump
Sum approach for EPC execution by a single EPC contractor, in order to
overcome the two basic problems mentioned above.
• For fast track execution under much larger project uncertainties, it is
extremely difficult to bid by a Contractor on Lump sum basis at very initial
stage of project. Indeed, a firm estimate of total cost and schedule of an EPC
project requires today a much longer time to prepare and a much higher
bidding cost; it will thus contain a larger contingency allowance for risk
mitigation.
 LSEPC Convertible
Contracts

Comparison of “Convertible” LSTK with other conventional contracts

 LSEPC Convertible
Contracts

Conversion Mechanics of Reimbursable to Lump Sum

 Target Estimate Contract
4. Target Estimate Contract
This is another form of Contract which specifies penalty or
reward to a contractor depending on whether the actual
construction cost of project is greater or less than the
contractor’s estimated direct job. Usually the percentage of
saving or cost over run is shared by owner and the contractor.
Bonuses and penalties may be stipulated for different project
completion dates.
 A+B, A+B+C Contract
5. A+B, A+B+C Contract
They are relatively new invention and were developed by
State Highway and Transportation Department. The purpose is
to provide contractor to complete project quickly and
efficiently.
A=Cost, B= Time, C=Warranty
 Risks viz-a-viz
Types Of Contracts
Allocation of Risk between Owner and Contractors

High
Low
Lump Sum EPC
A+B+C
Contractor Owner
A+B Risk
Risk
Target Estimate
Unit Costs
Cost Plus Fix Fee
Low Cost Plus Percentage
High
 Modern Contract
Types
Design, build and operate (DBO):
These contracts were increasingly used in the 1980s onwards by
government departments in the UK who saw a benefit in not
shouldering all the complications of building and operating a new
facility, but in passing this out to the commercial sector. Such
contracts have the added advantage that if a contractor has to
operate the works he has built for a number of years, he has a
financial incentive to use good quality design and materials to
minimize his expenditure on operation and maintenance. There are
several variations of DBO contracts. ABOT ‘build, operate, transfer’
contract usually implies the client pays for the works as they are
constructed
 Modern Contract
Types

Built-Operate-Transfer (BOT)Projects are the dire need of the

time. Developed countries had already established their
infrastructure and have ample resources to undertake new
projects and to properly maintain older one. But in developing
countries infrastructure need to be developed fully. Asian
development Bank (ADB) estimates that over $1 trillion will be
needed over the next decade to meet Asia's infrastructure
investment. Energy and transport will require a combined total of
$450 billion, followed by telecommunications, water supply and
waste disposal. Countries with major infrastructure requirements
are Bangladesh, People's Republic of China, India, Indonesia,
Pakistan, Philippines and Thailand. But with tight country budgets,
governments have found themselves either unwilling or unable to
finance the growing number of new infrastructures.
 Modern Contract
Types

Built-Operate-Transfer (BOT):
Developed infrastructure plays very important role in country’s
economy and development, while the process of execution of such
projects generate economic activity in the country. Besides uplifting
economy, they facilitate general public therefore federal and
provincial governments, development authorities, private investors
and local governments all over the world are considering BOT
financing options for construction of various infrastructure projects.
BOT is a method of private-public partnership, which is different from
complete privatization or nationalization. In BOT projects private
sector bears the cost of project first, then owns it for certain period
before handing it over to the government at no cost. It not only takes
spending off the government’s balance sheet but also provides
services to end user (general public) in its operational phase.
 Examples of BOT

• The Suez Canal and the Panama Canal are the example of BOTs and
had a 99-year concession period.
• Such arrangements have become particularly popular since the 1950s
and have been labeled Build-Operate-Transfer (BOT).
• Euro Tunnel is another example of BOT.
• Dulles Toll Road Extension, costing US$250 million started in 1988,
was reportedly the first BOT highway in the United States.
• The first privatized (BOT project) airport terminal in Canada is
Terminal 3 of Lester B Pearson International Airport in Toronto,
completed in 1991.
• In the far eastern countries like Malaysia and Philippine BOT contracts
played very important role in infrastructure development [3].
 Forms of BOT
• BOO(build-own-operate),
• BLT(build-lease-transfer),
• BOOM(build-own-operate-maintain),
• BOOT(build-own-operate-transfer),
• BOOTT(build-own-operate-train-transfer),
• BTO(build-transfer-operate),
• DBFO(design-build-finance-operate),
• DBO(design-build-operate),
• DBOM(design-build-operate-maintain),
• DOT(design-operate-transfer),
• ROO(rehabilitate-own-operate),
• ROT(rehabilitate-operate-transfer),
• DOT(develop operate transfer) and
• PPP(public private partnership) [4].
 Structure of BOT
BOT Contracts: Applicability in Pakistan for Infrastructure development
S. Mubin and A. Ghaffar, Pak. J. Engg. & Appl. Sci. Vol. 3 Jul 2008 (p.33 – 46)
Concession Period
 Implementation process
of a BOT-contract

The implementation process of a BOT-contract involves many

parties including the government, investor, financing institutions,
construction contractor, and operating firms. The involvement of
the project participants in a typical BOT-contract process is
highlighted below. The process of implementing a BOT-contract
project can be divided into four major stages: project feasibility
study and tendering, construction, operation, and post-transfer.
THANK YOU!