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Build-operate-transfer (BOT) is a contractual model in which a public organization (e.g., government) partners with a private company to finance, design, build, and operate a project for a specific period after the project is transferred back to the public entity.

What Small and Midsize Businesses Need to Know About Build-operate-transfer

BOT acts as a hybrid model that combines the benefits of the “build” option for insourcing operations and the “buy” option for outsourcing operations. BOT public-private relationships are typically used to set up, optimize, and run large-scale, long-term infrastructure or software development projects that may take anywhere from several years to decades, whether for onshore or offshore operations. At the end of the contract, the project is returned to the public entity. BOT is also commonly used for expanding operations in other countries.

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