Abstract
The application of life cycle contracts for capital construction projects proved to be useful in the international construction industry. The life cycle contract model helps the customer delegate design, construction, and operational risks to the contractor and focus on the key indicators of the capital construction project and monitoring tasks. Therefore, after the capital construction project is put into operation, its maintenance falls on the contractor’s shoulders. The amount of operating costs is directly proportional to the quality of the work performed, which encourages improving it at all production stages. Signing the life cycle contract for capital construction projects as part of the general contract at the design, construction, and operation stages will allow us to solve the goals and objectives set out in this paper to implement national projects in Russia. Further studies should analyze the risks and benefits for the customer and contractor in capital construction in terms of life cycle contracts. The further case study should present a mathematical algorithm for assessing the impact of the life cycle contract on the economy of capital construction projects.
Published Version
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