The BOT Process: What to Expect
If you're a mayor, town manager, or superintendent considering a BOT project, the process can feel opaque at first. It shouldn't be. Here's exactly how JBK Development moves a project from initial conversation to a building your community owns.
Stage 1: Feasibility Conversation
What happens: We meet with key municipal stakeholders — typically the mayor or town manager, a council representative, and whoever manages the facility need. No obligation, no cost.
What we cover:
What the facility need actually is and whether BOT is the right structure
Rough cost range and what a monthly payment structure might look like
The statutory framework (IC § 5-23) and what it requires
Timeline expectations
What you walk away with: A plain-language answer to the question: Is this realistic for our community?
Typical duration: 2–4 weeks from first contact to feasibility answer.
Stage 2: Resolution & RFQ
What happens: If BOT is the right path, the municipality passes a resolution authorizing the BOT process under IC § 5-23. JBK drafts the Resolution and the Request for Qualifications (RFQ) document for the municipality's review.
What the RFQ covers:
Project description and program requirements
Developer qualification criteria
Selection process and evaluation factors
Timeline for submission and selection
Note: The RFQ is a qualifications-based process — not a low-bid. The municipality evaluates developers on experience, financial capacity, and approach.
Typical duration: 4–8 weeks.
Stage 3: Scoping & Design Development
What happens: Once selected, JBK works with the municipality and design team to develop the project scope. This is the phase where the facility gets defined — square footage, program elements, site selection, and preliminary design.
Key output: A Scoping Agreement that documents the agreed program, preliminary design direction, and basis for the GMP.
Typical duration: 6–12 weeks depending on project complexity.
Stage 4: Guaranteed Maximum Price (GMP)
What happens: JBK delivers a Guaranteed Maximum Price — the total cost of construction, locked in. The municipality reviews the GMP and either accepts, negotiates, or declines. No commitment is made until the GMP is accepted.
What's included in the GMP:
All hard construction costs
Contractor overhead and fee
Permitting and inspection fees
Contingency (typically 3–5%)
Design and engineering (if not separately contracted)
What's not included: Land acquisition (municipality typically provides the site).
Typical duration: 4–8 weeks from scoping completion.
Stage 5: BOT Agreement Execution
What happens: The full Build-Operate-Transfer Agreement is executed between JBK and the municipality. This is the governing document for the entire project — it defines the payment structure, operating period, maintenance obligations, and transfer terms.
Key terms typically covered:
Operating period length (commonly 15–20 years)
Annual service/lease payment structure
Maintenance and capital reserve obligations
Transfer conditions and inspection process
Default and termination provisions
Typical duration: 2–4 weeks for agreement review and execution.
Stage 6: Construction
What happens: JBK's construction affiliate breaks ground. The municipality receives regular progress reports and has inspection rights throughout. JBK manages all subcontractors, inspections, and permitting.
Typical duration: Varies by project. A 10,000 SF public works garage: 6–9 months. A 35,000 SF fieldhouse: 12–18 months.
Stage 7: Operating Period & Transfer
What happens: JBK operates and maintains the facility under the terms of the BOT Agreement. The municipality makes its scheduled payments. At the end of the operating period, a final inspection occurs and ownership transfers to the municipality — free and clear.
What transfer looks like: A deed transfer, final inspection report, and delivery of all as-built drawings, warranties, and maintenance records.
Timeline Summary
Stage / Duration
Feasibility Conversation 2–4 weeks
Resolution & RFQ 4–8 weeks
Scoping & Design Development 6–12 weeks
GMP Development 4–8 weeks
BOT Agreement Execution 2–4 weeks
Construction 6–18 months
Total to groundbreaking ~6–9 months
Ready to start the conversation? Contact JBK Development →