3.2: Analyze Applicability of Contract Types and Delivery Methods

Question 1

Agenda

Answer 1

A document used to facilitate discussions at meetings; relevant information should be attached to it so that all attendees can participate effectively in the meeting. For meetings with clients during the design phases, these are usually prepared by the architect and distributed a day or two in advance.

Question 2

AIA A101

Answer 2

The Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum, this is the most commonly used construction contract and is the basis of many questions on the ARE. This agreement references the AIA A201 General Conditions.

Question 3

AIA B101

Answer 3

B101 is the “Standard Form of Agreement Between Owner and Architect.” This is the basic contract commonly used in practice by many architects, and is the primary owner-architect document referenced on the ARE.

Question 4

AIA C401

Answer 4

The Standard Form of Agreement Between Architect and Consultant, this AIA document references the prime agreement and contains many of the same provisions as found in AIA B101.

Question 5

Bidding

Answer 5

The process in which contractors submit their prices for cost of construction to the owner.

Question 6

Bonds

Answer 6

Purchased by the contractor to protect the owner against loss due to the contractor’s inability to complete the work.

Question 7

Bridged Design Build

Answer 7

A project delivery method where the owner hires a design architect to produce preliminary design plans, then bids the project out to design-build entities for pricing on completing the drawings as well as building the project. The benefit to this method over traditional design build is that the owner has more control over the design of the project, because the design-build firms are bidding off a set of conceptual plans and not simply based on the client’s budget and general scope of work.

Question 8

CM Advisor (CMa)

Answer 8

A type of construction management where the CM does not construct or act in the capacity of the owner, but provides advice during the design and construction phases of the project. They can contract with the owner using the AIA C132 agreement.

Question 9

CM Agent (CM-A)

Answer 9

A type of construction management where the CM has the authority to act as the owner in order to facilitate the project. This means that the CM can make design decisions, sign change orders, and perform any of the duties that the owner can perform. There’s no standard AIA agreement for this type of CM.

Question 10

Construction Manager as Constructor (CMC)

Answer 10

A delivery method where the CM executes a project with a guaranteed maximum price, with penalties incurred if they fail to meet that price.

Question 11

Construction Management

Answer 11

A service that can be provided for owners during the design and/or construction phases of a project, this professional assists with budgeting, scheduling, and constructability. Their services can be valuable to the entire project team if they’re brought onto the team early and if clear communication and distinction of roles is established.

Question 12

Design-Build (DB)

Answer 12

Design-Build is a kind of project delivery where the Owner works directly with one team that both designs and constructs the project. During construction, the designer’s role will vary greatly depending on whether the designer or the constructor leads the process.

Question 13

Design Bid Build (DBB)

Answer 13

Design bid build is a common project delivery method, and the primary delivery method tested on the ARE. This delivery method involves the design team creating a set of bid documents on which multiple contractors will enter bids, with one winning bidder ultimately being chosen to construct the work. The Owner holds a contract with the Architect and separate contract with the Contractor.

Question 14

Integrated project delivery (IPD)

Answer 14

An alternative type of project delivery which combines the traditional relationship between the owner, architect, and contractor into one entity, ultimately for the purpose of promoting better collaboration and the alignment of incentives among the members of the project team.

Question 15

Guaranteed maximum price (GMP, GMAX)

Answer 15

GMP is a compensation structure for the contractor which includes a maximum price cap. If the cost of construction exceeds the price cap, the contractor must pay the difference. On GMP projects the architect should be aware of this cap and the measures the contractor may take to maintain the budget, for example by buying cheaper, non-conforming products.

Question 16

Multiple Prime Contractors (MP)

Answer 16

A variation of DBB or DNB delivery methods, where more than one contractor contracts with the owner to perform the work. The potential benefits of this method include a potentially accelerated schedule, but it requires a savvy owner and architect to be able to manage successfully.

Question 17

Negotiated Select Team

Answer 17

A variation of the design-bid-build (DBB) delivery method, where the contractor is chosen early on, and key terms of the contract for construction are determined before the contract documents are complete, such as the contractor’s overhead and profit. This delivery method is typically only available on privately-funded projects since no bidding occurs.

Question 18

Project delivery method

Answer 18

Manner in which the owner contracts for design and construction services.

Question 19

Minority Business Enterprise (MBE)

Answer 19

Business owned and operated by women and/or minorities. Typically, the bidding process incentivizes “the business enterprise” to bid on publicly-awarded construction or service contracts. Owners can declare that a percentage of the work performed on a contract be awarded to the business enterprise. This is a sought-after certification as it can allow for additional funding sources for the owner.