Critical Success Factors in Winning BOT Contracts

TLDR

The BOT model is a key mechanism for capital‑intensive infrastructure in developing countries, yet securing a BOT concession remains difficult, demanding calculated risk‑taking and adaptability to host‑country dynamics. This study identifies and characterizes six critical success factors that project sponsors must master to win lucrative BOT contracts. The six factors are entrepreneurship, selecting the appropriate project, assembling a strong stakeholder team, devising an imaginative technical solution, presenting a competitive financial proposal, and incorporating special bid features.

Abstract

The build‐operate‐transfer (BOT) concept represents a step forward in meeting the needs of developing countries for more capital investments in infrastructure and industrial construction. However, for a private‐sector consortium bidding for a BOT concession, the road to winning a major BOT contract is not easy. The consortium must be willing to take calculated risks and at the same time be adaptable to changing demands and circumstances in the host country. This paper describes the importance and characteristics of six critical success factors (CSF) that are vital for project sponsors in their endeavors to win lucrative BOT contracts. These factors are: entrepreneurship, picking the right project, a strong team of stakeholders, an imaginative technical solution, a competitive financial proposal, and the inclusion of special features in the bid.