Comparison of Advantages and Disadvantages of Istisna Contract and B.O.T contract
Document Type : Specialized Article
Authors
1 Professor, University of Tehran
2 Master of Private Law
Abstract
One of concerns for governments in building infrastructure projects, is selecting the type of Construction contract concludes with the builder contractor. There are various contracts for the construction of an infrastructure project that can be selected by their governments to take action. Each of these contracts has its own advantages and disadvantages which is different with other contracts and makes their performance different. Governments according to their economic situation and technical characteristics of each project and advantages and disadvantages of construction contracts, select a type of these contracts for their intended project. Among these construction contracts are, B.O.T contract and Istisna contract and each has their own advantages and disadvantages. Some of these advantages are more important and plays a more important role in the success of a project, especially the issue of reducing government spending in building infrastructure projects that is one of the most important factors affecting on building infrastructure projects and due to budget constraints, governments try to use from contracts that has lower cost for them. With comparison of advantages and disadvantages of istisna contract and B.O.T contract we realize that B.O.T contract, due to its unique features, has a very good role in reducing government infrastructure costs and in this field is better than the Istisna contract. In addition to this advantage, also B.O.T contract has a better performance in other advantages of the Istisna contract and in total it seems that it must be said that BOT contract has more advantage than Istisna contract.
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