This is a simple example of how construction business transfer works in the IT industry and why it can be beneficial. Shortly after: In summary, if you decide to use the described model of business transmission services to create your own research and development center or to improve your business in another way, you should pay attention to Ukraine. A Construction Transaction Transfer (BOT) is an agreement under which an investor commits to build, finance and exploit a certain infrastructure value (e.g. airport. B, port, power plant, water distribution, etc.) for a specified period of time before transferring the value of the infrastructure to the government. The duration of such an agreement is generally long enough for the investor to re-take back the investment costs associated with building the infrastructure by applying a tariff or user fee during the period during which he operates the infrastructure. There are a number of variations of the basic BOT model. Under construction company transfer contracts (BOOT), the contractor owns the project during the project period. Under work leasing contracts (LTOs), the government leases the project to the contractor for the duration of the project and implements it.
Other variants have to build the contractor project as well as the project. An example is a DBOT (design-build-operate transfer) contract. Each project will have some modification of this contractual structure according to its specific requirements: not all BOT projects require a guaranteed supply of inputs, so it may not be necessary to conclude an agreement on the supply of fuels and requirements. The payment flow can be made in whole or in part by public rates and not by a buyer. But all of these parts can be modified, transformed for the comfort of both parties or divided into several separate contracts. For example, the contract itself and an additional risk-sharing agreement. The same applies to the operation of the construction of transmission services. At least once in your life, you`ve heard the famous word “share and conquer.” But have you ever heard of the Build-Operate transfer? Yes, it is not quite a principle of state administration, but it is worth understanding to know how modern project funding works and what the benefits are. In this post, we`ll tell you what BOT is, in which sectors it`s popular and which companies use this model. In addition, we will examine some clear examples of these projects, model contracts and options to find a company with a talent pool, to hire fintech developers or a team of experts who know a specific technology stack. Let`s start at the beginning.
The graph below shows the contractual structure of a typical bot project or a typical concession, including loan agreements, the shareholder contract between the project company`s shareholders and the subcontracting of the enterprise and construction contract, usually between the project company and a member of the project company consortium. After discovering what the construction company transfer model is, let`s now see what its benefits are and why it is so popular. For example, we have two small IT companies and one of those companies has created a particular product. Suppose it creates an application that helps design pages of simple and convenient goals for the provision of services or the sale of goods. And everything would be fine, but if there were more ready models that potential customers of the company could use, and that would be great. But the problem is, the company is small, it has the necessary number of employees and they are all responsible for specific tasks on the work on the product and its development. And none of them have the time, strength or skills to create and develop these models. And that`s where the second company it comes in with the IT outsourcing services construction company to help.