Build Operate Transfer (BOT) Contracts : Transfer of investment concession, design, implementation, operation , product sales; and costs reimbursement, and finally project transfer to the party, in a good condition, the sais contract would be in the following contracts: - BOT : build, operation and transfer - BOOT : build, ownership, operation and transfer - DBO : design , build and operation - DBOT : design, build, operation and transfer - BOO : build, ownership, operation - BTO : build, transfer, operation - DBFO: design, build, funding, operation For example: The operation of the outdoor restaurant of MILAD Tower in Tehran has been transferred to the contractor on BOT. - ESCO: Energy Service Companies Contracts They are contracts, based on the energy performance, or one of the important tools of energy consumption optimization, which are established on energy management principles and energy engineering science. The industries having been well formed and developed in the country based on ESCO, the planning and policy development for the optimization of energy consumption and experimental actualization of the energy optimization solutions are established. For example: the contracts concluded at Tehran Municipality aimed for reduction of energy costs. In such contracts, the contractor’s fees payment is made from the conservations, arisen from the costs reduction. Various typical projects of energy services companies: - installation and commissioning of the electric and …

Build Operate Transfer (BOT) Contracts :
Transfer of investment concession, design, implementation, operation , product sales; and costs reimbursement, and finally project transfer to the party, in a good condition, the sais contract would be in the following contracts:
– BOT : build, operation and transfer
– BOOT : build, ownership, operation and transfer
– DBO : design , build and operation
– DBOT : design, build, operation and transfer
– BOO : build, ownership, operation
– BTO : build, transfer, operation
– DBFO: design, build, funding, operation
For example:
The operation of the outdoor restaurant of MILAD Tower in Tehran has been transferred to the contractor on BOT.
– ESCO: Energy Service Companies Contracts
They are contracts, based on the energy performance, or one of the important tools of energy consumption optimization, which are established on energy management principles and energy engineering science. The industries having been well formed and developed in the country based on ESCO, the planning and policy development for the optimization of energy consumption and experimental actualization of the energy optimization solutions are established.
For example: the contracts concluded at Tehran Municipality aimed for reduction of energy costs. In such contracts, the contractor’s fees payment is made from the conservations, arisen from the costs reduction.
Various typical projects of energy services companies:
– installation and commissioning of the electric and heat synchronized production systems: CHP in the factories and building complexes
– installation and commissioning of the optimization systems for the energy consumption in industry
– rehabilitation and commissioning of the outdoor lighting systems in the public areas/streets
– rehabilitation of the industrial equipment, aimed at optimizing the energy consumption.

The characteristics of the energy services companies:
– The contract price is not fixed:
The contract of the energy services companies, contrary to the other contracts, has not a fixed and determined price, indeed, the amount payable to the company depends on the rate of conservation, achieved. In order to determine the company’s share, the energy consumption rate is measured by the proper procedures and merriment devices. These types of contracts are called the contracts, based on efficiency (performance).
– The costs are not borne by the customers (clients):
The optimization planning is usually very costly, due to which the customer, without any technical background, would hardly accept its risk. In the contracts, where the energy services company directly attempts for investment, the customer/buyer pays the company a part of the conservation, arisen from energy costs over the contract period, and gains the ownership of the installed equipment, after termination of the contract. Also, in the other contracts of the energy services, the customer never pays the company more than the amount of the conservation, resulted.

Reduction of maintenance and repair costs:
In most contracts, with efficiency bases, signed by the energy services companies, the costs of maintenance and repair for the whole or part of newly installed equipment, can be borne by the provider of the services, over the contract period. Moreover, the energy services company is committed to provide the necessary training for the maintenance group over the contract period, in order to enable them to handle the maintenance services of the whole equipment, after termination of the contract
Swap transaction:
trade transaction or “swap” is a combination of a cash and a self -transactions, : (means a transaction, in which a commodity is purchased in cash, but its delivery is in the future, like purchasing wheat from the farmers, in advance which is performed simultaneously and interactively. Usually, such transaction is used for the purpose of arbitration and reimbursing the accounts negative state, by means of the other available positive accounts. For example: gas and oil swap transactions.
Typical swap transaction are as follows:
– the exchange swap in two different currencies, with fixed interest rate
– the swap in fixed interest rate, and another in variable interest rate
– the exchange swap in two currencies, one in fixed interest rate and another in variable interest rate
– the exchange swap of the interest in the condition, where the two interest rates are equal.
Turn – Key Contracts:
The turn key contact is performed by assigning the project and its implementation tasks to the contractor , without supervisor’s involvement , at fixed prices, as from the project commencement up to the operational stage. For example: most hotels construction contracts, which are performed through The Cultural Heritage and Tourism Organization.

Design-Build Contracts:
The basic design of such contracts is fulfilled by the employer and the project and its implementation tasks are assigned to the contractor. This is like above mentioned example, but with one difference, that the supervisory is assigned to the project by The Cultural Heritage and Tourism organization.

Design and Management Contracts:
This is typical of design and construction contracts; the only difference is, besides, the implementation, the basic design management should be performed by the contractor, as well.

Management Contracts (MC):
In such contracts all the employer’s authorization, within design, construction, financial and technical areas, stated in the subject of the contract (including the fixed or percentage fees) is transferred to the contractor. Most active companies involved in oil and gas projects are based on the MC assignments.

Construction Management (CM):
The construction management contracts are performed, by means of, assigning the tasks for the constructional performance, to the construction contractor.

Lump Sum Contracts:
The lump sum contract is prepared, by means of concluding the construction contract at fixed price, according to the pre-defined technical specifications, prepared in advance.
For example: the contracts that Iran KHODRO (a car manufacturing company) concludes its contract with TOM Iran Khodro (another manufacturing company), and assigns its new and development projects to TOM Iran Khodro is on lump sum basis.
Unit price Contracts:
this type of contract is prepared, according to the specific price list, published every year. Such contracts are rather used in building and construction activities. For example: transfer of a part of construction of the buildings related to Tehran International Fair to the contracting companies.
Cost Plus Contracts:
Concluding the contract for the assignments performance, with (percentage fee) (cost plus) is made us follows:
– Cost plus fixed percentage
– Cost plus fixed free
– Cost plus variable percentage
– target estimate

Guaranteed Maximum Price contracts:
This type of contracts is concluded, based on the specific and controlled ceiling costs, with fixed technical specification definition.

Engineering Procurement Construction Contracts (EPC)
This type of contracts is for performance of different stages of a project together, and generally including : design engineering, procurement of goods, supply of equipment and materials, constructional operations, installation and commissioning, according to special conditions; performance of such contracts is one of the most routine contracts in Iran, by which the projects performance, relevant to the industrial sector is assigned to the contractors and the main contractor can employ other contractors. However, by this type of contract other procedures, too, can be used on EPC:
– Engineering Procurement (EP)
– E.P. C and Management (EPCM)
– E.P. C and Installation (EPCI)
– E.P.C Supervision (EPCS)
– E.P. Manufacturing Schedule (EPMS)
– E.P. production and schedule (EPPS)

Buy Back Contracts:
Such a contract is performed by means of, signing foreign investment contract and the investor’s accounts settlement, relying on the project goods and production services. The buyback contract is considered a part of the service purchase contracts. In this type of contract, the foreign investment company undertakes all investment funds, as well as, equipment installation, commissioning and transfer of technology, and after commissioning it transfers to the host country. The capital return, besides, the capital profit are obtainable through selling the products and services. Such contracts are mostly implemented in the countries having oil and gas resources.

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