The difference between a BOT contract and a BOOT contract is that under the BOOT contract:
A)the customer must observe all phases of the project process before the product is handed over.
B)the project organization is obligated to complete the project on time.
C)the project organization must take initial ownership of the product.
D)the customer must organize the project's resources for the project organization.

Question

Quizplus · Accepted Answer

In a BOT (Build-Operate-Transfer) contract, the project organization builds and operates a facility for a certain period before transferring ownership back to the client. In a BOOT (Build-Own-Operate-Transfer) contract, the project organization must take initial ownership of the facility before operating it and then transferring ownership back to the client. Therefore, the correct answer is C. The other options are not characteristics of a BOOT contract.

The Difference Between a BOT Contract and a BOOT Contract