Build-Operate-Transfer in Indiana: How It Works

Indiana is one of a handful of states with a dedicated BOT statute — and it's one of the most straightforward paths to new public infrastructure that most municipal officials have never heard of.

If your community needs a new public works garage, EMS station, fire station, community center, or school facility, Build-Operate-Transfer may be the fastest, lowest-risk way to get it built. No bond referendum. No competitive low-bid process. No design firm engagement before you've committed to anything.

Here's what you need to know.

What Is Build-Operate-Transfer?

Build-Operate-Transfer (BOT) is a public-private partnership model authorized under Indiana Code § 5-23. Under BOT, a private developer finances, designs, and builds a public facility. The developer then operates and maintains the facility for a defined period — typically 10 to 20 years. At the end of that period, ownership transfers to the municipality at no additional cost.

The municipality pays a lease or service fee during the operating period instead of taking on upfront debt. At the end of the agreement, the community owns a paid-for, well-maintained building.

Why Indiana Municipalities Choose BOT

No referendum required. Traditional public construction requires voter approval for bond financing. BOT is structured as a service agreement — the municipality commits to payments over time, not a lump-sum debt instrument. Most BOT agreements don't trigger referendum requirements.

Speed. From first meeting to groundbreaking, a BOT project can move in a fraction of the time of traditional public procurement. There's no low-bid process, no separate design phase, and no gap between design and construction.

Cost certainty. The developer delivers a Guaranteed Maximum Price (GMP). The municipality knows its total cost exposure before committing. There are no architect change orders, no scope creep surprises, and no contractor disputes to manage.

Reduced administrative burden. The developer manages the project. Municipal staff doesn't need to become construction managers. The community gets the building — the developer handles the complexity.

Qualification-based selection. BOT uses a Request for Qualifications (RFQ) process under IC § 5-23 — municipalities select developers based on experience, capability, and approach, not lowest bid. This means better partners and better outcomes.

What Gets Built Under BOT

BOT works best for essential public infrastructure with predictable long-term use:

  • Street department and public works facilities

  • Fire stations and EMS buildings

  • Community centers and recreation facilities

  • School support buildings and fieldhouses

  • Municipal office buildings

  • Salt storage and fleet maintenance facilities

If your community has been deferring a facility need because the bond math doesn't work, BOT is worth understanding.

The JBK Approach

JBK Development has structured BOT agreements across Indiana and Southern Michigan. We work directly with mayors, town councils, and superintendents — not through brokers or intermediaries.

Our process starts with a no-cost feasibility conversation. We assess the project, the community's financial position, and whether BOT is the right structure. If it is, we guide the municipality through the RFQ process, draft the BOT agreement, and deliver a GMP before any public commitments are made.

We don't win work through low bids. We win through relationships, transparency, and a track record of delivering what we promise.

Talk to us about your project →

JBK Development structures BOT agreements under Indiana IC § 5-23. Keith Plummer, J.D., leads all municipal engagement.